Business / Financial Markets | CURRENCY MARKET

Dollar firms to above ¥113.10 in late Tokyo trading

JIJI

The dollar was firmer above ¥113.10 in Tokyo trading late Tuesday amid a wait-and-see mood.

At 5 p.m., the dollar stood at ¥113.11-11, up from ¥112.65-66 at the same time Monday. The euro was at $1.1369-1370, down from $1.1425-1425, and at ¥128.60-61, down from ¥128.71-72.

The dollar rose above ¥113.30 in early trading thanks to spillover effects from its strengthening against the euro amid uncertainties over Britain’s exit from the European Union, traders said.

The U.S. currency dropped to levels around ¥113 later in the morning as the Nikkei 225 average moved on a weak note.

After firming back above ¥113.10 in the afternoon, helped by a rise in long-term U.S. interest rates, the dollar moved directionlessly in late trading as market players took a wait-and-see stance to see the course of Brexit negotiations, traders said.

Media reports on telephone talks between Chinese Vice Premier Liu He and U.S. Treasury Secretary Steven Mnuchin on trade issues gave a temporary boost to the dollar versus the yen in the morning, a currency broker said.

But “dollar buying lost momentum afterward,” the broker said. “Investor concerns over U.S.-China trade friction appeared strong.”

“Investors will likely find it difficult to boost trading” for sometime, an official of a major Japanese bank said, citing unfavorable external environments.

GET THE BEST OF THE JAPAN TIMES
IN FIVE EASY PIECES WITH TAKE 5