The dollar rose close to ¥113.90 in Tokyo trading Wednesday, supported by higher Japanese stock prices.
At 5 p.m., the dollar stood at ¥113.86-87, up from ¥113.58-59 at the same time on Tuesday. The euro was at $1.1277-1278, down from $1.1311-1311, and at ¥128.42-42, slightly down from ¥128.48-48.
The dollar was aided by a rise in the benchmark 225-issue Nikkei average and the Shanghai Composite stock index.
“A view that Washington could win a trade war with Beijing continued to support the dollar” ahead of a summit meeting between U.S. President Donald Trump and Chinese President Xi Jinping later this week, an official of a foreign exchange margin trading service firm said.
“Risk appetite has been growing on the back of higher Japanese and U.S. stock prices, as U.S. plans to raise tariffs on imports from China next year have been factored into the market,” an official of a major Japanese bank said.
For now, market players are paying keen attention to a speech by U.S. Federal Reserve Chairman Jerome Powell set for later on Wednesday.
Powell is expected to signal the Fed’s intention to raise interest rates gradually, an official of a foreign exchange margin trading service firm said. “If this happens, an upward pressure will be put on the dollar,” the official said.