The dollar briefly topped ¥109 in Tokyo trading Tuesday, helped by fresh hopes for progress in U.S.-China trade negotiations.
At 5 p.m., the dollar stood at ¥108.85-85, up from ¥108.73-73 at the same time Monday. The euro was at $1.1082-1086, down from $1.1089-1090, and at ¥120.65-65, up from ¥120.58-58.
U.S. President Donald Trump said Monday that Washington and Beijing will likely sign a “very big portion” of the so-called phase one of a U.S.-China trade deal “ahead of schedule,” prompting dollar buying and sending the greenback briefly above ¥109 in overnight trading overseas for the first time in some three months.
In Tokyo on Tuesday, the dollar again rose above ¥109 in midmorning trading, supported by a rise in the Nikkei 225 stock average and higher U.S. long-term interest rates.
But the U.S. currency turned top-heavy around the level due to dollar selling by Japanese exporters, and fell below ¥108.90 in late trading amid a dearth of fresh buying incentives.
“The dollar’s upside was limited as sell orders were lined up above ¥109,” a currency broker said.
A wait-and-see mood prevailed ahead of policy-setting meetings of the U.S. Federal Reserve and the Bank of Japan later this week, traders said.