Business / Financial Markets | CURRENCY MARKET

Dollar firmer above ¥113.50 in late Tokyo trading


The dollar was firmer above ¥113.50 in Tokyo trading late Tuesday after concerns over U.S.-China trade friction receded somewhat.

At 5 p.m., the dollar stood at ¥113.58-59, up from ¥113.23-23 at the same time Monday. The euro was at $1.1311-1311, down from $1.1361-1362, and at ¥128.48-48, down from ¥128.63-69.

With its topside versus the yen limited in early trading after U.S. President Donald Trump suggested plans to raise tariffs on Chinese imports, the dollar weakened to around ¥113.40 toward noon.

The greenback rose to around ¥113.50 in afternoon trading thanks to a solid performance by the Nikkei 225 stock average.

In late trading, the U.S. currency moved narrowly around ¥113.50 before briefly rising above ¥113.60 following a media report that the United States and China have reached a mutually satisfactory trade agreement, traders said.

With some market players being skeptical about the media reports in the absence of follow-up reports, the dollar failed to stay above ¥113.60, an official of a bank-affiliated securities firm said.

The official noted that the dollar could extend its current upward trend and test ¥114 next week.

But an official of a major life insurer said that “dollar purchases are unlikely to grow as long-term U.S. interest rates are not rising.”