The dollar firmed around ¥108.40 in Tokyo trading Wednesday, buoyed by rekindled hopes for a U.S-China trade deal and resulting higher stock prices.
At 5 p.m., the dollar stood at ¥108.38-42, up from ¥108.23-28 at the same time Tuesday. The euro was at $1.1200-1200, down from $1.1237-1237, and at ¥121.39-39, down from ¥121.64-65.
The dollar topped ¥108.60 early in the morning amid growing expectations for progress in U.S.-China trade talks following U.S. President Donald Trump’s Twitter announcement that he will meet with Chinese President Xi Jinping on the sidelines of the Group of 20 summit in Osaka later this month.
The U.S. currency maintained strength around that level supported by the Nikkei stock average’s rise of over 300 points. But in the afternoon the greenback came under selling pressure generated by a media report that Trump is considering slapping fresh sanctions on Turkey.
“Players moved to lock in profits due to concerns over the geopolitical risk,” said a bank official.
Investors put active transactions on hold before the U.S. Federal Reserve’s two-day Federal Open Market Committee meeting ends later on Wednesday, an official at a foreign exchange margin trading service firm said.
Fed Chairman Jerome Powell’s news conference after the meeting also drew attention, the official added.