Business / Financial Markets | CURRENCY MARKET

Worries over U.S.-China trade war see dollar tumble to ¥107 level in Tokyo

JIJI

The dollar plunged to around ¥107 in Tokyo trading on Friday, battered by fresh concerns over an escalation of the U.S.-China trade conflict.

At 5 p.m., the dollar stood at ¥106.91-91, down from ¥109.14-14 at the same time Thursday. The euro was at $1.1112-1113, up from $1.1032-1032, and at ¥118.81-81, down from ¥120.41-42.

Investors continued to sell dollars for haven yen after U.S. President Donald Trump said on Twitter on Thursday that he would slap a 10 percent tariff on additional Chinese goods worth $300 billion on Sept. 1.

The greenback fell to one-month lows below ¥106.90 in view of the Nikkei stock average’s tumble. The U.S. currency showed some resilience around midmorning but breached the ¥107 line again in late afternoon trading on selling by risk-averse European investors.

“The yen kept attracting risk-off purchases,” an official of a major securities firm said, adding that if the headline number in the U.S. government’s employment report for July, due out later Friday, fails to beat a market consensus, the dollar may go down to around ¥106.50.