Business / Financial Markets | CURRENCY MARKET

Dollar firms to around ¥109.80 in Tokyo but limited by virus fears

JIJI

The dollar was a shade firmer around ¥109.80 in late Tokyo trading Friday, though its upside was limited by unabated concerns about the novel coronavirus.

At 5 p.m., the dollar stood at ¥109.78-78, up from ¥109.72-73 at the same time Thursday. The euro was at $1.0841-0841, down from $1.0879-0879, and at ¥119.01-02, down from ¥119.37-37.

After rising to around ¥109.90 on real demand-backed buying around noon, the dollar moved narrowly around ¥109.80 in the afternoon.

Despite downward pressure from the coronavirus crisis in and outside China, the underside of the dollar-yen pair “remains solid,” an official at a bank-affiliated securities firm said.

The official added that the dollar’s moves were aligned to the correction of the U.S. stock market after its recent record-breaking advances.

Market sources also said the weakening of the euro also supported the dollar against the Japanese currency.

Meanwhile, an official at a foreign-exchange margin trading company said a wait-and-see mood prevailed in Tokyo’s currency market ahead of the release of U.S. retail sales for January later Friday.

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