Business / Financial Markets | CURRENCY MARKET

Possibility of U.S.-China trade deal sees dollar rise to around ¥108 in Tokyo

JIJI

The dollar strengthened to around ¥108 in Tokyo trading Friday, as investors’ appetite for risk assets was stimulated by growing hopes for a trade deal between the United States and China.

At 5 p.m., the dollar stood at ¥107.91-91, up from ¥107.40-40 at the same time Thursday. The euro was at $1.1011-1011, down from $1.1016-1016, and at ¥118.83-83, up from ¥118.32-33.

Underpinned by buying cheering U.S. President Donald Trump’s Twitter announcement Thursday that he will meet with Liu He, China’s vice premier and top trade negotiator, in Washington on Friday, the dollar moved on a firm note around ¥107.90 in the early morning.

The greenback gained further ground in midmorning thanks to the Nikkei stock average’s advance and demand from Japanese importers. But it met with selling after topping ¥108.

“The rises in stock prices and the dollar against the yen reflected revived risk appetite among investors,” a domestic bank official said.

But an official at a foreign exchange margin trading service firm pointed out that players found it difficult to tilt positions either way before seeing the outcome of the ongoing two-day U.S.-China trade negotiations in Washington from Thursday.

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