Business / Financial Markets | CURRENCY MARKET

Dollar flat around ¥113.40 in Tokyo ahead of EU summit


The dollar pared early losses to stand around ¥113.40 in Tokyo trading late Thursday, as investors sat on the fence ahead of a European Union summit.

At 5 p.m., the dollar stood at ¥113.38, down slightly from ¥113.40 at the same time on Wednesday. The euro was at $1.1382 up from $1.1324, and at ¥129.06, up from ¥128.41.

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

The U.S. currency headed up after a strong start from the benchmark 225-issue Nikkei stock average on the back of a rise in U.S. equities.

The dollar approached ¥113.50 toward noon, backed by buying by Japanese importers in midmorning trading.

The greenback grew top-heavy around ¥113.50, as buying was held in check ahead of the EU summit and a policy-setting meeting of the European Central Bank later on Thursday, traders said.

The dollar fell below ¥113.40 in late trading, due to spillover effects from position-adjustment euro buying ahead of the major events in Europe, traders said.

If the EU side makes some concessions in talks about Britain’s exit from the European Union, or Brexit, at the summit, the market would react positively because it fears the country leaving the bloc without an agreement, an official at a foreign-exchange margin trading service said.

But the impact of the Brexit talks on the dollar-yen rate will likely be smaller than on European currencies, the official said.