Business / Financial Markets | CURRENCY MARKET

Dollar cut gains against yen after Trump-Kim summit ends without progress

JIJI

The dollar cut gains to drift around ¥110.70 in late Tokyo trading Thursday, as the closely followed U.S.-North Korea summit in Hanoi ended without an agreement.

At 5 p.m., the dollar stood at ¥110.75-76, still up from ¥110.37-38 at the same time Wednesday. The euro was at $1.1381-1381, up from $1.1378-1378, and at ¥126.05-06, up from ¥125.59-59.

After rising above ¥111 in overseas trading on receding risk aversion, the dollar mainly moved in a tight range slightly below the level in Tokyo on Thursday.

The greenback trimmed more of its gains in the late afternoon following media reports that a news conference about the summit by U.S. President Donald Trump would take place two hours earlier than scheduled, traders said.

After cutting short the summit schedule, Trump told the news conference that no agreement was reached with North Korean leader Kim Jong Un mainly because Kim requested international sanctions against his country be lifted entirely.

The summit results announced by Trump “did not differ much from what market players had expected,” an official of a foreign exchange margin trading service company said, playing down the impact of the meeting on dollar-yen rates.

In Thursday’s trading, a drop in the 225-issue Nikkei stock average, also accelerated by the news about the Trump-Kim summit, weighed on the dollar against the yen, traders said.

“Dollar buying lacks momentum due to speculation of an end to the U.S. interest rate hike campaign,” an official of a margin trading service company said.

“It will be difficult for the dollar to establish solid ground above ¥111 without big buying factors,” the official added.