Business / Financial Markets

Greenback firms to around ¥107.20 in Tokyo

Jiji

The dollar firmed to around ¥107.20 in late Tokyo trading Monday after fluctuating narrowly for the majority of the day, reflecting a lack of strong trading incentives.

At 5 p.m., the dollar stood at ¥107.18-18, up from ¥107.09-09 at the same time on Friday. The euro was at $1.0815-0819, up marginally from $1.0815-0816, and at ¥115.89-91, up from ¥115.82-84.

The dollar plunged to around ¥106.80 in overseas trading late last week, dampened by weak U.S. retail sales in April.

After rising to around ¥107.10 in early Tokyo trading Monday, thanks to buying on dips, the greenback climbed to around ¥107.30, supported by real demand-backed buying.

In the early afternoon, the dollar hovered on a sluggish tone around ¥107, but it rebounded later to around ¥107.20, thanks to a climb in U.S. stock prices in off-hours trading.

Still, the dollar came under selling pressure to lock in profits in late trading.

An official at a Japanese bank noted that the dollar-yen rate "was weighed down by concerns over a deterioration in U.S.-China relations," with the U.S. government tightening export controls on Chinese telecom giant Huawei Technologies Co.

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