The dollar strengthened to around ¥109 in Tokyo trading Tuesday on hopes for progress in U.S.-China trade talks.
At 5 p.m., the dollar stood at ¥108.95-95, up from ¥108.84-88 at the same time Monday. The euro was at $1.1015-1015, down from $1.1029-1030, and at ¥120.01-02, down slightly from ¥120.05-06.
The dollar briefly rose above ¥109 on news that top U.S. and Chinese trade negotiators spoke by phone and reached consensus on solving core issues of concern.
But the currency fell back after additional news that the two sides agreed to continue talks disappointed market participants. “In the end, nothing has changed,” an asset management company official said of the trade talks.
“The mood, as a whole, is not bad” for the dollar, the official said.
“The dollar has been firm recently and the focus is whether it can be steadily above ¥109,” an official at a foreign exchange margin trading service company said.
“More specific news, such as that U.S. and Chinese trade negotiators have reached agreement, is required for the dollar to rise further,” the official said.