The dollar scaled around ¥107.80 in Tokyo trading Wednesday, supported by growing hopes for a U.S.-China trade deal.
At 5 p.m., the dollar stood at ¥107.80, up from ¥107.32 at the same time Tuesday. The euro was at $1.1034, down from $1.1045, and at ¥118.95, up from ¥118.53-54.
After consolidating at levels around ¥107.50 in the morning, the dollar moved up and reached ¥107.70 by noon on brisk performance of the 225-issue Nikkei average and strong demand from Japanese importers.
The greenback temporarily rose above ¥107.80 in the afternoon on buying triggered by a reported comment by the editor-in-chief of the Global Times, a newspaper affiliated with the Communist Party of China, that Beijing will introduce important measures to ease the negative impact of the trade war with the United States, traders said.
“Also behind the dollar’s appreciation was receding expectations for substantial easing by central banks in the world,” an official at a major securities firm said.
If the European Central Bank hammers out more hawkish policy than expected and the U.S. Federal Reserve takes hawkish measures at their upcoming policy-setting meetings, the dollar may stage a full-fledged rally, a life insurance firm official noted.