Business / Financial Markets | CURRENCY MARKET

Dollar slightly higher around ¥109.10 in late Tokyo trading

JIJI

The dollar was slightly higher around ¥109.10 in Tokyo trading late Wednesday, as excessive concerns over pneumonia caused by a new strain of coronavirus receded to some extent.

At 5 p.m., the dollar stood at ¥109.10, up from ¥109.07-08 at the same time Tuesday. The euro was at $1.1005, down from $1.1016, and at ¥120.07-08, down from ¥120.17.

The dollar temporarily rose above ¥109.20 in morning trading, supported by an overnight rise in U.S. equities and an increase in U.S. long-term interest rates, traders said.

The greenback fell to levels around ¥109.10 in the late afternoon, as investors refrained from active dollar buying to wait and see the outcome of the U.S. Federal Reserve’s two-day Federal Open Market Committee meeting through Wednesday, traders said.

A China visit by World Health Organization Director-General Tedros Adhanom Ghebreyesus and his meeting with Chinese President Xi Jinping are believed to have helped ease the risk-averse mood among investors, traders said.

But with the number of coronavirus-infected patients surpassing that of severe acute respiratory syndrome, or SARS, in China and new reports of patients in Japan, many market sources voiced caution over the viral disease.

“The market will be vulnerable to new information on the disease due to uncertainty over the outlook,” a Japanese bank official said.

Coronavirus banner