Business / Financial Markets | CURRENCY MARKET

Dollar falls below ¥106 in Tokyo trading


The dollar fell below ¥106 in Tokyo trading Friday, pressured by risk-averse selling amid persistent concerns over the U.S.-China trade conflict.

At 5 p.m., the dollar stood at ¥105.94, down from ¥106.10 at the same time Thursday. The euro was at $1.1187, down from $1.1216, and at ¥118.53, down from ¥119.02.

The dollar fell to around ¥105.80 in the early morning in response to a media report that the United States is holding off a decision to grant licenses that will allow U.S. companies to supply goods to China’s Huawei Technologies Co., traders said.

After retaking ¥106 later in the morning on demand-backed buying and a rise in the Nikkei stock average, the greenback came under selling pressure and temporarily sank below ¥105.90 in the afternoon.

The dollar has been prone to attract risk-off selling versus the yen due to lingering fears of a prolonged U.S.-China trade war, traders said.

An official of a Japanese bank voiced worries about the possibility of the dollar suffering a “flash crash” on Monday, when the Tokyo market will be closed for a national holiday.

Coronavirus banner