Business / Financial Markets | CURRENCY MARKET

Dollar falls below ¥105.20 in Tokyo trading

JIJI

The dollar dropped below ¥105.20 in Tokyo trading Tuesday amid concerns over a prolonged U.S.-China trade war.

At 5 p.m., the dollar stood at ¥105.19-19, down from ¥105.94-94 at the same time Friday. The euro was at $1.1192-1192, up from $1.1187-1187, and at ¥117.73-74, down from ¥118.53-54.

The Tokyo market was closed Monday for Mountain Day.

The dollar fluctuated around ¥105.20 in the early morning under pressure induced by U.S. President Donald Trump’s comment on Friday ruling out an early trade deal between Washington and Beijing.

The greenback went up close to ¥105.60 in midmorning on real demand-backed purchases by Japanese importers after the three-day weekend. But it gradually lost ground in the afternoon on selling on a rally, traders said.

“Basically risk-averse dollar selling vis-a-vis the yen continues” amid concerns over the U.S.-China conflict, as well as over civil unrest in Hong Kong, the Argentine peso’s tumble and a drop in U.S. long-term interest rates, an asset management firm official said.

“The dollar may slip through ¥105 this week,” a trust bank official said.