Business / Financial Markets | CURRENCY MARKET

Dollar drops below ¥109 in Tokyo trading


The dollar slipped through ¥109 amid a growing risk-averse sentiment in Tokyo trading on Monday.

At 5 p.m., the dollar stood at ¥108.95-96, down from ¥109.28-28 at the same time Friday. The euro was at $1.1030-1030, down from $1.1047-1048, and at ¥120.18-18, down from ¥120.74-74.

The dollar showed some resilience in the early morning, thanks to buying prompted by its overnight plunge close to ¥109 after U.S. President Donald Trump, in his remark Friday, dashed hopes for tariff rollbacks by the United States and China before he and Chinese President Xi Jinping sign a “phase one” trade deal.

But the greenback met with real demand-backed selling for yen as well as risk-off selling induced by the Nikkei stock average’s fallback and heightened concerns over the Hong Kong unrest after a police officer shot a protester.

For the dollar to appreciate further, more supportive news on the U.S.-China trade front will be necessary, a Japanese bank official said.

Coronavirus banner