Dollar falls to upper 110 yen zone amid U.S.-Japan trade talks concern

Japan Economic Newswire |

The U.S. dollar fell to the upper 110 yen range Friday in Tokyo, as market players grew concerned over the result of a trade dialogue between Japan and the United States that kicked off the previous day.

At , the dollar fetched 110.66-67 yen compared with 111.01-11 yen in New York and 111.04-05 yen in Tokyo at . It moved between 110.61 yen and 111.16 yen during the day, changing hands most frequently at 110.88 yen.

The euro was quoted at $1.1465-1467 and 126.87-91 yen against $1.1521-1531 and 128.01-11 yen in New York and $1.1583-1585 and 128.62-66 yen in Tokyo late Thursday afternoon.

The dollar was weak as market players sought the perceived safety of the yen after Toshimitsu Motegi, Japan's economic revitalization minister, and U.S. Trade Representative Robert Lighthizer decided to continue their discussion through Friday.

"There is speculation that the dialogue did not go so well (on the first day) as it has been stretched on to Friday," said Yuzo Sakai, manager of foreign exchange business promotion at Tokyo Forex & Ueda Harlow.

After their Thursday session, Motegi said he had called for the United States to return to the Trans-Pacific Partnership -- an 11-member regional trade pact -- but that Washington would like to promote trade negotiations bilaterally with Tokyo.

Dealers said the market is concerned about a U.S. plan to impose additional tariffs on imported cars and parts, which would hurt Japanese automakers' earnings, a development likely to draw yen-buying as it would make market players more risk-averse.

Yen buying accelerated in the afternoon on weak Japanese stocks.

Selling of the euro, sparked by a media report that the European Central Bank is concerned about euro-zone banks' exposure to Turkey amid the lira's plunge, added to the yen's strength.

"The yen was bought amid a risk-off mood as European stocks fell amid concerns over Turkey," said Takuya Kanda, senior researcher at the Research Institute.


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