Business / Financial Markets | CURRENCY MARKET

Dollar almost unchanged around ¥113.10 later in Tokyo

JIJI

The dollar was almost unchanged around ¥113.10 in Tokyo trading late Thursday after paring early losses due to buybacks.

At 5 p.m. the dollar stood at ¥113.10, against ¥113.07 at the same time on Wednesday. The euro was at $1.1322, down from $1.1330, and at ¥128.06, down from ¥128.13.

The dollar traded around ¥113.20 in early trading, carrying over its strength from overnight trading overseas, traders said.

The greenback weakened later in the morning due to a plunge in the benchmark 225-issue Nikkei stock average following news reports that Meng Wanzhou, chief financial officer of Chinese telecommunications giant Huawei Technologies Co., has been arrested by Canadian authorities at the request of the U.S. government, traders said.

The U.S. currency fell below ¥112.60 in afternoon trading, but soon rebounded to around ¥112.70 thanks to repurchases, traders said.

In late trading, the dollar jumped above ¥113 following a media report that China’s Commerce Ministry had offered a prospect for a trade agreement being reached between Beijing and Washington within 90 days, traders said.

“Concerns grew over a deterioration of U.S.-China relations” following the news on the arrest of Wanzhou, a currency broker said.

But a sense of relief spread among market participants in the afternoon as China did not protest the arrest of the Huawei executive, an official at a foreign exchange margin trading service firm said.

An official at a bank-affiliated securities firm predicted that the dollar-yen rate “is likely to show directionless movements” for the time being, with the dollar’s topside capped by a fall in long-term U.S. interest rates.