Business / Financial Markets | CURRENCY MARKET

Dollar drops below ¥107.60 in Tokyo trading

JIJI

The dollar fell below ¥107.60 in Tokyo trading Tuesday amid persistent concerns over the U.S.-China trade war and other risk factors.

At 5 p.m., the dollar stood at ¥107.59-59, down from ¥107.92-93 at the same time Friday. The euro was at $1.0987-0988, down from $1.1050-1050, and at ¥118.21-23, down from ¥119.27-28. The Tokyo market was closed Monday for a national holiday.

After dropping below ¥107.40 in overseas trading due to waning hopes for the resumption of U.S.-China trade talks and worse than expected European economic data, the dollar rebounded to top ¥107.60 by midmorning thanks to buybacks prompted by a rise in the Nikkei 225 average and real demand-backed buying, traders said.

The key stock price gauge went up on U.S. Treasury Secretary Steven Mnuchin’s reported remarks that high-level U.S.-China trade talks would resume in Washington early next month.

Later, the dollar struggled for direction.

“Investors find it hard to tilt positions either way” with positive and negative news mixed over U.S.-China trade talks and global economic matters, a think tank analyst said.

Only short-term players will be active until current market concerns including over the Middle East situation are all gone, an official at a foreign exchange margin trading service firm noted.