Business / Financial Markets | CURRENCY MARKET

Dollar falls below ¥108.70 in Tokyo trading

JIJI

The dollar slipped below ¥108.70 in Tokyo trading Tuesday on the back of increasing uncertainty over the signing of the “phase one” agreement between the United States and China.

At 5 p.m., the dollar stood at ¥108.66-66, down from ¥108.91-91 at the same time Monday. The euro was at $1.1068-1068, up from $1.1056-1056, and at ¥120.27-27, down from ¥120.43-43.

Dollar-bearish sentiment continued into Tokyo hours after the greenback sank close to ¥108.50 in overseas trading following a CNBC report that Beijing has turned “pessimistic” about U.S. President Donald Trump and his Chinese counterpart, Xi Jinping, signing the trade deal due to Trump’s denial of a tariff rollback agreement, traders said.

The dollar sank below that level before midmorning, also pressured by the Nikkei stock average’s plunge.

After firming back above ¥108.60 toward noon, the dollar moved in a narrow range due to a dearth of fresh trading incentives.

“Investors can’t buy the dollar further only on expectations of progress in the U.S.-China trade talks,” a market source said.

“With powerful buying factors not in sight, the dollar-yen pair is vulnerable to speculative selling,” said an official at a foreign exchange margin trading service firm.