Business / Financial Markets | CURRENCY MARKET

Dollar slightly firmer above ¥109.60 in late Tokyo trading

JIJI

The dollar was slightly firmer above ¥109.60 in Tokyo trading late Tuesday after recouping overnight losses in overseas trading, helped by renewed optimism over trade negotiations between the United States and China.

At 5 p.m., the dollar stood at ¥109.67-67, up from ¥109.64-64 at the same time Monday. The euro was at $1.1238-1238, up from $1.1229-1230, and at ¥123.25-26, up from ¥123.11-12.

The dollar moved around ¥109.20 in early trading, carrying over its weakness from foreign trading following reports about China’s retaliatory duties on imports from the United States in a further escalation in their trade dispute, traders said.

Dollar buying intensified later in the morning, aided by optimistic comments from U.S. President Donald Trump on the outlook for trade negotiations with Beijing, sending the dollar above ¥109.60 around noon.

According to U.S. media reports, Trump said at a dinner party at the White house on Monday that he thinks that the U.S.-China trade negotiations will be successful.

The dollar was also propped up by buying by Japanese importers, a rise in U.S. stock index futures and the resilience of the Nikkei 225 stock average, traders said.

After the buying ran its course, the dollar mainly fluctuated around ¥109.60-70 in the afternoon.

“Rise-averse sentiment weakened, but the dollar lacked buying incentives to rise above ¥110,” a currency broker said.

“Some market players hurriedly moved to buy back the dollar against the yen after seeing a relatively small decline in Tokyo stocks and the dollar’s firm downside,” another currency broker said.

“Unless a specific schedule of the next trade talks between the United States and China is decided, the dollar is unlikely to stage a sharp recovery (versus the yen),” an official of a Japanese bank said.

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