Business / Financial Markets | CURRENCY MARKET

Dollar weakens below ¥111.70 in Tokyo ahead of U.S. GDP data and bilateral summit

JIJI

The dollar was softer below ¥111.70 in Tokyo trading late Friday amid a growing wait-and-see mood ahead of the release of U.S. growth data and a Japan-U.S. summit, both later in the day.

At 5 p.m., the dollar stood at ¥111.67-67, down from ¥111.83-83 the same time on Thursday. The euro was at $1.1140-1140, down from $1.1154-1154, and at ¥124.48-52, down from ¥124.82-83.

The dollar rose to around ¥111.80 on purchases by Japanese importers before cutting the gains due to a slide in the benchmark Nikkei stock average.

Market players were awaiting the release of U.S. gross domestic product data for the January-March quarter and the summit between Prime Minister Shinzo Abe and U.S. President Donald Trump, an official at a foreign-exchange margin trading service said.

Basically, the dollar-yen pair moved in a narrow range as “active trading was held in check before the 10-day holiday” in Japan starting Saturday, an official at a Japanese bank said.

Referring to the Japan-U.S. summit, a currency broker said, “The yen may strengthen if auto tariffs are discussed and a risk-averse mood grows as a result.”