Business / Financial Markets | CURRENCY MARKET

Dollar weakens to ¥110.60 in late Tokyo trading

JIJI

The dollar was weaker around ¥110.60 in late Tokyo trading Monday after early gains fizzled out amid a lack of buying incentives.

At 5 p.m., the dollar stood at ¥110.62-63, down from ¥110.74-76 at the same time Friday. The euro was at $1.1355-1355, up from $1.1346-1346, and at ¥125.62-62, down from ¥125.65-66.

The dollar rose above ¥110.70 in early trading after U.S. President Donald Trump suggested on Twitter an extension to Friday’s deadline for a trade deal with China.

Supported by the strong opening of the Nikkei 225 stock average, the greenback temporarily rose above ¥110.80 toward midmorning trading.

The dollar then fell to around ¥110.60 on selling by Japanese importers for month-end settlements and stayed around that level for the rest of the day amid a dearth of trading pegs, traders said.

The dollar-yen pair was supported by dip buying when the greenback approached the psychologically important line of ¥110.50, a currency broker said.

“Investors found it difficult to trade actively amid a widespread view that the dollar-yen pair is unlikely to move much,” a foreign exchange margin trading service firm official said.

“A wait-and-see mood will likely prevail in the market until investors see the final U.S.-China trade agreement,” an official of a bank-affiliated securities firm said.

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