Business / Financial Markets | CURRENCY MARKET

Dollar weaker below ¥111.20 in late Tokyo trading

JIJI

The dollar was weaker below ¥111.20 in late Tokyo trading Monday, though it recovered some ground in line with brisk Japanese stocks.

At 5 p.m. the dollar stood at ¥111.15, down from ¥111.39 at the same time Friday. The euro was at $1.1599, up from $1.1556, and at ¥128.92-95, up from ¥128.74.

After rising above ¥111.30, the greenback fell below ¥111 toward noon due to selling by Japanese exporters and position-adjustment sales, traders said.

But the dollar regained ¥111 in the afternoon, with its downside supported by strong Japanese stocks. It moved narrowly around ¥111.10 in late trading in the dearth of market-moving factors, they added.

“Risk sentiment in the market is not bad” despite persistent concerns over the U.S.-China trade war, an official of a currency broker said.

The official referred to brisk Chinese stocks, higher U.S. index futures in off-hours trading and relatively stable movements of the lira in the Turkish market.

Currency market participants seem to have digested U.S. Federal Reserve Chairman Jerome Powell’s speech in an annual economic symposium in Jackson Hole, Wyoming, last week. In the speech, he reiterated the Fed’s stance of continuing gradual rate hikes.

The dollar-yen sector is likely to be affected by the movements of Chinese stocks, the yuan and U.S. financial markets, with few fresh trading incentives — such as economic data — expected to emerge this week, said an official of a foreign exchange margin trading service firm.