The dollar edged down below ¥111.20 in Tokyo trading Wednesday, as investors turned risk-averse in view of a looming U.S.-European Union trade war.
At 5 p.m., the dollar stood at ¥111.18-18, down from ¥111.26-26 at the same time Tuesday. The euro was at $1.1265-1266, almost unchanged from $1.1265-1265, and at ¥125.25-26, down from ¥125.34-34.
In the wake of the United States and the European Union showing their readiness to slap fresh tariffs on each other over subsidies to aircraft makers, the dollar slipped through ¥111.10 in early in the morning.
The greenback strengthened above ¥111.20 in midmorning trading thanks to purchases by domestic importers. In the afternoon, the U.S. currency fluctuated between ¥111.10 and ¥111.20.
Dollar-yen transactions lacked vigor prior to major overseas events later on Wednesday, including an EU summit on Brexit, the European Central Bank’s policy-setting meeting, the release of the minutes of the U.S. Federal Reserve’s Federal Open Market Committee meeting last month and the announcement of the U.S. consumer price index for March, a currency broker said.