Business / Financial Markets

Weighed down by China tensions, greenback eases to around ¥107.50 in Tokyo

Jiji

The dollar moved on a weak note around ¥107.50 in Tokyo trading late Friday.

At 5 p.m., the dollar stood at ¥107.45-45, down from ¥107.77-77 at the same time on Thursday. The euro was at $1.0902-0903, down from $1.0966-0966, and at ¥117.16-16, down from ¥118.19-20.

The dollar fell to around ¥107.50 in overseas trading, against the backdrop of fears over an escalation in the U.S.-China conflict.

After rising above ¥107.70 in early Tokyo trading, thanks to real demand-backed buying, the greenback slipped to around ¥107.50 after the end of an extraordinary monetary policy meeting by the Bank of Japan.

In the afternoon, the U.S. currency temporarily dropped to around ¥107.30 as China started discussions on a national security law for Hong Kong at a meeting of the National People's Congress, which started earlier the same day.

"Market players became risk-averse, reflecting their concerns about tensions between the United States and China," an official at a Japanese bank said.

Coronavirus banner