Business / Financial Markets | CURRENCY MARKET

Dollar cuts loss after dropping below ¥105 in Tokyo trading


The dollar trimmed its loss on buybacks after sinking below ¥105 in Tokyo trading Monday amid swelling concerns over the escalating tariff war between the United States and China.

At 5 p.m., the dollar stood at ¥105.73, down from ¥106.63 at the same time Friday. The euro was at $1.1120, up from $1.1068, and at ¥117.58, down from ¥118.03.

The dollar fell to nine-month lows around ¥104.50 in the early morning, after U.S. President Donald Trump voiced intention of further raising tariffs on Chinese goods and urged U.S. firms to withdraw from China in his quick response to Beijing’s announcement Friday that it will slap additional duties on 75 billion dollars of U.S. products.

But the greenback retook the ¥105 threshold in midmorning trading, aided by real demand-backed buying by Japanese importers and repurchases induced by a pause in the Nikkei stock average’s plunge, traders said.

In late trading, the dollar briefly topped ¥105.90 on Trump’s reported remarks that China has requested to restart bilateral trade talks, they added.

But as long as sings of an end to the U.S.-China trade conflict remain invisible, “the dollar will basically depreciate against the yen,” an official at a major Japanese bank said.

Coronavirus banner