Business / Financial Markets | CURRENCY MARKET

Dollar rises above ¥111 in Tokyo as optimism grows over U.S. shutdown, trade talks with China

JIJI

The dollar firmed above ¥111 in Tokyo trading Thursday, backed by higher optimism about trade negotiations between the U.S. and China.

At 5 p.m., the dollar stood at ¥111.06-07, up from ¥110.68-69 at the same time on Wednesday. The euro was at $1.1286-1286, down from $1.1319-1319, and at ¥125.35-36, up from ¥125.29-29.

In early trading, the dollar traded mainly around ¥110.90-¥111.00 before weakening below ¥110.90 on a slight downturn in the Nikkei stock average, traders said.

The greenback rose back to around ¥111 later in the morning, supported by the key stock market indicator’s return to positive territory and buying by domestic importers.

In the afternoon, the U.S. currency temporarily surpassed ¥111.10 on a media report that the U.S. government is considering pushing back the deadline for a trade deal with China, a market source said, adding that players later retreated to the sidelines to wait for the release of U.S. retail sales data for December.

“The basic dollar-buying trend continued” as investors anticipated progress in the trade negotiations and a deal between U.S. President Donald Trump and Congress to avert another partial shutdown of the Federal government, a currency broker said.

But when the dollar topped ¥111, selling by domestic exporters emerged, a Japanese bank official said.