Business / Financial Markets | CURRENCY MARKET

Greenback falls below ¥106.30 in Tokyo ahead of U.S. Labor Day holiday


The dollar fell below ¥106.30 in Tokyo Monday amid trading ahead of the U.S. market’s closure for Labor Day.

At 5 p.m., the dollar stood at ¥106.25-26, down from ¥106.51-51 at the same time Friday. The euro was at $1.0982-0982, down from $1.1037-1038, and at ¥116.69-70, down from ¥117.56-57.

The dollar fell below ¥106 in the early morning after the United States and China imposed additional tariffs on each other’s products amid escalating trade tensions on Sunday.

The greenback fluctuated in a narrow range amid a dearth of fresh trading incentives after rebounding above ¥106 on buying on dips.

Market players were not enthusiastic about trading because the U.S. market will be closed on Monday, an official at a Japanese bank said.

The dollar is “solid, supported by buying from players backed by real demand,” the bank official said.

An official at another Japanese bank said the dollar’s firmness is “creepy, given that the U.S.-China trade war shows no signs of a resolution.”

“The dollar may attract further buying if U.S. economic data are upbeat,” an official at a Japanese bank said. This week’s U.S. data include the August jobs report, due out Friday.

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