Business / Financial Markets | CURRENCY MARKET

Dollar tops ¥106.10 in Tokyo trading on U.S.-China trade rumor

JIJI

The dollar retook the ¥106 threshold in Tokyo Thursday, buoyed by positive news on the U.S.-China trade front.

At 5 p.m., the dollar stood at ¥106.10-10, up from ¥105.73-74 at the same time Wednesday. The euro was at $1.1082-1082, down from $1.1093-1093, and at ¥117.58-59, up from ¥117.27-32.

The dollar rose above ¥106 in the early hours, carrying over its strength from foreign trading. But the greenback was pulled down through the ¥105.90 range by month-end selling by Japanese exporters around midmorning.

After struggling for direction amid a dearth of fresh incentives, the U.S. currency in late afternoon trading jumped over the ¥106 line on a media report that Washington and Beijing are discussing matters concerning proposed bilateral trade talks in September.

“Excessive concerns about U.S.-China trade tensions receded,” said a currency broker.

“But the dollar is expected to turn gradually weaker against the yen, because the situation has changed little,” an official at a foreign-exchange margin trading firm noted.

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