Business / Financial Markets | CURRENCY MARKET

Dollar tops ¥111.65 in Tokyo as hopes climb for China-U.S. trade deal

JIJI

The dollar surpassed ¥111.65 in Tokyo trading Friday, amid growing hopes for a U.S.-China trade deal.

At 5 p.m., the dollar stood at ¥111.67-67, up from ¥111.35-35 at the same time Thursday. The euro was at $1.1229-1230, up from $1.1240-1241, and at ¥125.40-40, up from ¥125.16-17.

The dollar traded mostly between ¥111.60 and ¥111.70 in the early morning, carrying over its strength in overnight trading overseas on expectations for progress in the ongoing U.S.-China trade negotiations.

The greenback came close to ¥111.80 following a media report that Chinese President Xi Jinping noted “substantial progress” on a trade deal with Washington.

But the dollar stopped climbing thereafter as the Nikkei stock average failed to expand gains and U.S. long-term interest rates turned flat in off-hours trading, a currency broker said, adding there were few incentives to trade while the Chinese markets including Hong Kong were closed.

In late afternoon trading, investors concentrated on position-squaring moves before the release of the U.S. employment report for March later on Friday.

Risk appetite will continue to support the dollar next week if the jobs data prove stronger than expected, an official at a foreign-exchange margin trading firm said.

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