Business / Financial Markets | CURRENCY MARKET

Dollar slightly firmer around ¥110.70 in Tokyo

JIJI

The dollar was slightly stronger around ¥110.70 in Tokyo trading late Wednesday, supported by higher Japanese stock prices.

At 5 p.m., the dollar stood at ¥110.68-69, up from ¥110.61-61 at the same time on Tuesday. The euro was at $1.1319-1319, up from $1.1284-1285, and at ¥125.29-29, up from ¥124.83-83.

The dollar moved mainly around ¥110.40-50 in early trading before rising above ¥110.60 toward noon thanks to a continued rise in the benchmark 225-issue Nikkei stock average and higher long-term U.S. interest rates.

In afternoon trading, the dollar firmed close to ¥110.70 on the back of growing hope for progress in U.S.-China trade talks, before being pressured by selling on a rally.

In late hours, a wait-and-see mood prevailed prior to the announcement of the U.S. consumer price index for January later on Wednesday, traders said.

The dollar is highly likely to fall against the yen depending on news reports on U.S.-China trade talks as the U.S. currency has been bought on hope for progress in the negotiations, a currency broker said.

An official of an asset management firm said that currency market players are likely to find it difficult to tilt their positions either way before seeing the outcome of a two-day U.S.-China ministerial-level trade talks through Friday.