Business / Financial Markets | CURRENCY MARKET

Dollar slightly firmer around ¥113 in late Tokyo trading

JIJI

The dollar was slightly firmer around ¥113 in late Tokyo trading Friday, supported by hopes that the United States and China may begin moving to resolve their damaging trade war.

At 5 p.m., the dollar stood at ¥112.96-97, up from ¥112.89-90 at the same time Thursday. The euro was at $1.1435-1436, up from $1.1359-1359, and at ¥129.18-19, up from ¥128.24-24.

The dollar was sluggish versus the yen throughout the morning after the Institute for Supply Management’s U.S. manufacturing index for October turned out weaker than expected Thursday, traders said.

In the afternoon, the U.S. currency took a sudden upturn to top ¥113 following a news report that U.S. President Donald Trump asked senior officials to make a draft of a trade deal with China, the traders also said.

In late trading, the dollar fluctuated narrowly around ¥113.

The dollar-yen pair is unlikely to move much prior to Friday’s announcement of U.S. jobs data for October and Tuesday’s U.S. midterm elections, a Japanese bank official said.

An official of a bank-linked securities firm said that the dollar “is expected to be capped at a technically important level of around ¥113.30.”

“China may not necessarily accept a U.S. proposal for a deal,” an official of a foreign exchange margin trading service firm said, warning against making a premature judgment on the course of the two countries’ trade friction.