Fresh hopes for progress in U.S.-China trade negotiations helped lift the dollar above ¥108.70 in Tokyo trading Monday.
At 5 p.m., the dollar stood at ¥108.73-73, up from ¥108.61-61 at the same time Friday. The euro was at $1.1089-1090, down from $1.1112-1112, and at ¥120.58-58, down from ¥120.69-70.
The dollar traded at around ¥108.70 on a firm note in the early morning on the back of renewed optimism about the signing of a partial trade deal by the United States and China, after the two countries’ announced that they came close to finalizing some portions of the “phase one” agreement through high-level telephone talks, traders said.
The greenback became firmer later in the morning thanks to the Nikkei 225 stock average’s solid moves and higher U.S. long-term interest rates.
But the rise prompted some players to take to the sell side, forcing the dollar to struggle for direction in the afternoon.
“It’s difficult to buy the dollar further ahead of policy-setting meetings by the U.S. Federal Reserve and the Bank of Japan later this week,” said an official at a foreign exchange margin trading service firm.
A bank official also referred to the U.S. Labor Department’s upcoming jobs report for October as another closely watched event.