Business / Financial Markets | CURRENCY MARKET

Dollar tops ¥108.30 in Tokyo

JIJI

The dollar rose above ¥108.30 in Tokyo trading Tuesday on the back of Washington’s suspension of a tariff hike on Chinese goods worth $250 billion under a tentative trade accord with Beijing.

At 5 p.m., the dollar stood at ¥108.34-35, up from ¥107.91-91 at the same time Friday. The euro was at $1.1020-1021, up from $1.1011-1011, and at ¥119.40-41, up from ¥118.83-83. The Tokyo market was closed Monday for a national holiday.

The dollar moved on a firm note around ¥108.40 in the morning, with players welcoming the delayed tariff hike, previously slated for Tuesday. The greenback was also given a boost from the Nikkei 225’s upsurge.

But the dollar eased later, pressured by a drop in U.S. long-term interest rates and U.S. sanctions against Turkey for its military offensive in northern Syria.

Although dollar-yen trading was active in the early morning, players retreated to the sidelines after the midmorning rate-fixing “to wait for fresh incentives,” a currency broker said.

The fact that the United States and China still have a lot to negotiate on concrete matters before signing the “phase one” trade accord has made investors reluctant to buy the dollar further, the broker added.