Business / Financial Markets | CURRENCY MARKET

Dollar almost flat around ¥108.60 in late Tokyo trading

JIJI

The dollar was almost unchanged around ¥108.60 in Tokyo trading late Tuesday amid a dearth of fresh trading incentives.

At 5 p.m., the dollar stood at ¥108.60-60, against ¥108.66-66 at the same time on Monday. The euro was at $1.1320-1320, up from $1.293-1293, and at ¥122.94-94, up from ¥122.71-71.

The dollar sagged below ¥108.40 in early trading, carrying over its weakness from foreign trading overnight amid rekindled concerns over a U.S.-China trade conflict following U.S. President Donald Trump’s threat of additional tariffs on Chinese imports.

The greenback rose to around ¥108.60 in midmorning trading due to real demand-backed purchases, traders said.

The benchmark 225-issue Nikkei stock average’s upturn to positive territory on the back of solid performances of U.S. and Chinese equities also supported the dollar’s advance, an official of a foreign exchange margin trading service firm said.

The U.S. currency traded narrowly around ¥108.60 in afternoon trading.

An official of a bank-affiliated securities firm said that investor sentiment “isn’t good due to political risks as well as weak U.S. economic indicators.”

Buying induced by a U.S. decision to suspend plans to impose punitive tariffs on all imports from Mexico “has apparently run its course,” the official with the foreign exchange margin trading service firm said, adding that market players are paying attention to the movements of U.S. and European stock prices.