Business / Financial Markets | CURRENCY MARKET

Dollar weakens to below ¥109.70 in late Tokyo trading

JIJI

The dollar moved on a weak note below ¥109.70 in Tokyo late Monday as investors retreated to the sidelines to see the course of U.S.-China trade negotiations.

At 5 p.m., the dollar stood at ¥109.64-64, down from ¥109.76-76 at the same time Friday. The euro was at $1.1229-1230, up from $1.1225-1226, and at ¥123.11-12, down from ¥123.21-22.

The dollar eased to levels below ¥109.70 in early trading following a drop in U.S. stock index futures in off-hours trading, traders said.

The greenback briefly fell below ¥109.60 after a weak start of the Nikkei 225 stock average.

But the dollar rose above ¥109.70 in midmorning trading thanks to buying by Japanese importers, traders said.

“A pause in Tokyo stock falls also triggered (dollar) buybacks,” an official of a foreign exchange margin trading service firm said.

The U.S. currency fluctuated mostly around ¥109.70-80 in the afternoon amid a dearth of fresh trading incentives, traders said.

“Investors refrained from active trading amid a strong wait-and-see mood” ahead of the planned U.S. announcement later Monday of details about additional tariffs on all imports from China.

An analyst at a bank-affiliated securities firm said that the dollar-yen rate may remain on a weak note, noting possible prolonged trade friction between the world’s two largest economies.