Business / Financial Markets | CURRENCY MARKET

Dollar tops ¥108 in Tokyo

JIJI

The dollar topped ¥108 for the first time in a week in Tokyo trading Thursday, helped by hopes for progress in U.S.-China trade talks.

At 5 p.m., the dollar stood at ¥108.04-04, up from ¥107.47-47 at the same time on Wednesday. The euro was at $1.1367-1367, up from $1.1364-1364, and at ¥122.82-83, up from ¥122.12-12.

After moving around ¥107.70 in early trading, the dollar gained steam and topped ¥108 for the first time since Jan. 20 in the morning, after the South China Morning Post reported that Washington and Beijing have tentatively agreed to another truce in their trade war.

The greenback continued to move above ¥108 in late trading, although its upside was limited by selling to lock in profits, traders said.

“A rise in U.S. long-term interest rates also supported the dollar’s advance,” a source from a Japanese bank said.

“Profit-taking emerged after the dollar rose above its 20-day moving average of around ¥108.10,” an official of a foreign securities firm said.

A currency broker predicted that the dollar will continue moving on a solid note on hopes for progress in U.S.-China trade talks toward the meeting between U.S. President Donald Trump and his Chinese counterpart, Xi Jinping, on Saturday.

But a trade deal must be agreed for the dollar to chase higher ground, an official of a foreign exchange margin trading service firm said.