The dollar weakened to levels near ¥109.60 in Tokyo trading Thursday, as a risk-averse mood grew ahead of the start of ministerial-level trade talks between the United States and China.
At 5 p.m., the dollar stood at ¥109.62, down from ¥110.13 at the same time Wednesday. The euro was at $1.1187, down from $1.1205, and at ¥122.64, down from ¥123.40-41.
The dollar slipped through ¥109.90 after U.S. President Donald Trump said Beijing “broke the deal” it had made in trade negotiations with Washington and the benchmark 225-issue Nikkei average made another dismal start.
After buying by Japanese importers waned, the dollar came below the recent low of ¥109.71 as a sense of caution spread ahead of the ministerial trade negotiations starting in Washington on Thursday, according to an official at a foreign exchange margin trading service firm.
The talks are scheduled to continue into Friday, the day the Trump administration plans to raise tariffs on Chinese products worth $200 billion.
Speculative dollar-selling versus the yen by European players on the back of slumps in Asian stock markets was detected, a currency broker said.
If the talks fail to produce a deal and the tariffs are raised, the greenback could sink below ¥109.60, a domestic bank official said.