Business / Financial Markets | CURRENCY MARKET

Dollar shoots up to ¥109.60 in Tokyo trading on U.S.-China rumors and U.K. election

JIJI

The dollar surged to around ¥109.60 in Tokyo trading Friday on expectations that the U.S.-China trade war and the turmoil over Britain’s exit from the European Union will settle down.

At 5 p.m., the dollar stood at ¥109.62-62, up from ¥108.63-63 at the same time Thursday. The euro was at $1.1167-1167, up from $1.1137-1137, and at ¥122.43-44, up from ¥120.99-99.

The dollar soared to around ¥109.40 in overseas trading after U.S. President Donald Trump said on Twitter Thursday that Washington is getting “very close to a big deal with China.”

News reports that the United States and China reached a partial trade agreement also helped the dollar’s climb.

In early Tokyo trading Friday, the greenback broke through ¥109.50 as the pound jumped on a British media report that Prime Minister Boris Johnson’s Conservative Party was expected to win a commanding majority in Thursday’s general election, traders said.

The U.S. currency met with bouts of profit-taking and position-adjusting selling, but rose to around ¥109.60 on fresh buying by overseas players in late trading, they said.

While a sense of relief spread throughout the market over the trade issue and the British election, many market players are still reluctant to buy dollars to test the currency’s upside around ¥110, according to the traders.

Many players are waiting for further developments over problems that have weighed down the market for a long time. An official at a Japanese bank, however, warned that the U.S.-China trade war and the Brexit turmoil “are far from over.”