Business / Financial Markets | CURRENCY MARKET

Dollar drops to around ¥110.65 in Tokyo

JIJI

The dollar fell to levels around ¥110.65 on Tuesday, battered by enhanced selling amid heightened concerns over the U.S.-China trade dispute.

At 5 p.m., the dollar stood at ¥110.65-65, down sharply from ¥111.67-67 at the same time April 26, the final trading day before the start of the extended Golden Week holiday period. The euro was at $1.1195-1195, up from $1.1140-1140, and at ¥123.88-88, down from ¥124.48-52.

In overseas trading Monday, the dollar fell below ¥111 following U.S. President Donald Trump’s tweets threatening to raise tariffs on $200 billion worth of Chinese goods from 10 percent to 25 percent.

In Tokyo, dollar scaled above ¥110.85 in early morning trading but eased later on selling prompted by the Nikkei 225 stock average’s steep fall. After returning to a ¥110.80 range thanks to purchases by European players in the afternoon, the greenback came under renewed selling pressure.

A Chinese media report suggesting a possible suspension in U.S.-China trade negotiations put a damper on the dollar, a fund manager said.

The United States and China are scheduled to start ministerial-level talks in Washington on Wednesday.

“Even if the Trump administration refrains from carrying out the tariff increase, U.S.-China tensions will be left intact until the trade row is fully resolved,” said an official at a bank-affiliated securities firm.

“Investors cannot trade the dollar-yen pair actively” as long as the situation surrounding the trade talks remains opaque, an official at a foreign exchange margin trading service firm said.