Business / Financial Markets | CURRENCY MARKET

Greenback stays resilient around ¥108.50 in Tokyo trading

JIJI

The dollar recouped early losses to top ¥108.50 in Tokyo trading Thursday.

At 5 p.m., the dollar stood at ¥108.58-58, up from ¥108.44-44 at the same time Wednesday. The euro was at $1.1073-1073, up from $1.1068-1068, and at ¥120.23-23, up from ¥120.01-02.

The dollar fell below ¥108.30 around midmorning as the Nikkei stock average plunged in response to fears that the passage of a U.S. bill to support pro-democracy protesters in Hong Kong would jeopardize a preliminary trade deal between the United States and China.

But the greenback took a sharp upturn after a media report said Chinese Vice Premier Liu He, the country’s top negotiator, said he is “cautiously optimistic” about Washington and Beijing finalizing the “phase one” trade pact.

In the afternoon, the dollar crept up to levels around ¥108.60. Liu’s comment prompted players to buy back the dollar against yen, traders said.

The dollar-yen pair has been confined in a narrow range because “the U.S.-China trade negotiations are still underway,” a Japanese bank official said.