Business / Financial Markets | CURRENCY MARKET

Dollar eases to around ¥109.10 in Tokyo

JIJI

The dollar eased to around ¥109.10 in Tokyo trading Tuesday amid spreading anxieties over the U.S. economy.

At 5 p.m., the dollar stood at ¥109.09-09, down from ¥109.58-58 at the same time Monday. The euro was at $1.1076-1076, up from $1.1017-1017, and at ¥120.83-84, up from ¥120.73-74.

The dollar fell below ¥109 in overnight trading with buying sentiment chilled by a dismal U.S. manufacturing index reading for November released by the Institute for Supply Management.

Unfavorable news concerning U.S.-China ties also encouraged dollar selling vis-a-vis the yen.

But the greenback firmed up to around ¥109.20 by midmorning aided by settlement demand from Japanese importers and the Nikkei 225 stock average’s resilience, traders said.

Pressured by profit-taking, the U.S. currency gradually fell to around ¥109.10 in the afternoon.

“The dollar proved stronger than imagined, underpinned by expectations for U.S.-China trade talks to go on,” said a think tank analyst.

But the dollar cannot attract active buying until news about some new positive developments on the U.S.-China trade front hit the market, an official at a foreign exchange margin trading service company said.