Business / Financial Markets | CURRENCY MARKET

Greenback rises to ¥109.30 level in Tokyo as U.S.-China talks progress

JIJI

The dollar strengthened to around ¥109.30 in lackluster Tokyo trading Friday on optimism linked to talks to end the U.S.-China trade war.

At 5 p.m., the dollar stood at ¥109.28-28, up from ¥108.95-95 at the same time Thursday. The euro was at $1.1047-1048, down from $1.1075-1075, and at ¥120.74-74, up from ¥120.67-67.

Following its overnight rise to near ¥109.50 amid increased expectations for progress in the U.S.-China trade negotiations, the dollar moved mostly between ¥109.10 and ¥109.30 in the morning, affected by orders backed by real demand.

The dollar-yen pair turned almost static in the afternoon.

“Recent rises in Japanese and U.S. stocks as well as in the dollar versus the yen indicate increased investor risk appetite,” said a trust bank official.

But another Japanese bank official noted that the dollar is unlikely to appreciate much further because the U.S. Federal Reserve is still inclined to lower interest rates.