Business / Financial Markets | CURRENCY MARKET

Dollar stronger above ¥110.60 in late Tokyo trading

JIJI

The dollar was stronger above ¥110.60 in Tokyo trading late Tuesday, supported mainly by higher Japanese share prices.

At 5 p.m., the dollar stood at ¥110.61-61, up from ¥109.74-74 at the same time Friday. The Tokyo currency market was closed Monday for a national holiday.

The euro was at $1.1284-1285, down from $1.1338-1338, and at ¥124.83-83, up from ¥124.45-45.

The U.S. currency also got a boost from a rise in long-term U.S. interest rates. It briefly lost ground on the Bank of Japan’s decision to reduce its purchase amount of outstanding Japanese government bonds but bounced back later.

Other dollar-bullish factors included news reports that U.S. President Donald Trump and his Chinese counterpart, Xi Jinping, will hold telephone talks before a March 1 deadline for a trade deal and that U.S. lawmakers reached a basic agreement to avert another federal government shutdown, according to a currency broker.

“A risk-averse mood receded, and dollar purchases and yen selling were promoted,” the currency broker said.

But the broker added that the dollar “may fall below ¥110 again,” depending of the results of U.S.-China trade talks this week.

In late hours, the dollar’s topside versus the yen grew heavy as currency market players retreated to the sidelines to see the course of the U.S.-China trade talks, traders said.

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