Business / Financial Markets | CURRENCY MARKET

Dollar rises to around ¥109.90 in Tokyo trading

JIJI

The dollar rose to around ¥109.90 in Tokyo trading Thursday, aided by reported progress in the development of treatments for pneumonia caused by the new coronavirus.

At 5 p.m., the dollar stood at ¥109.90-91, up from ¥109.33 at the same time Wednesday. The euro was at $1.1003, down from $1.1037, and at ¥ 120.93, up from ¥120.66.

The dollar rose close to ¥109.90 in midmorning trading, supported by a surge in the 225-issue Nikkei average following reports in Britain and China that substantial progress has been made in the development of a new coronavirus vaccine and other treatments, traders said.

The greenback approached ¥110 in the afternoon, after China said it will halve additional tariffs on $75 billion of U.S. goods starting Feb. 14 in line with the so-called phase one trade agreement, traders said.

“The unexpected stock market rally in and outside Japan can be taken as a result of money glut,” said an official at a foreign exchange margin trade service firm.

Meanwhile, an official of a major securities firm said the dollar-yen pair may move nervously until economic damage caused by the coronavirus becomes clear.