Jiji PressTOKYO (Jiji Press) — The dollar slid to fresh five-month lows below ¥109 in Tokyo on Thursday before showing some resilience in late trading, dragged down by U.S. President Donald Trump’s remark that the greenback “is getting too strong.”
At 5 p.m., the dollar stood at ¥109.01-02, down from ¥109.67-67 at the same time Wednesday. The euro was at $1.0644-0645, up from $1.0618-0620, and at ¥116.03-05, down from ¥116.45-45.
The dollar broke the ¥109 line in overnight trading overseas after Trump told The Wall Street Journal that the U.S. currency “is getting too strong” reflecting public confidence in the new president.
Trump’s another comment expressing his preference of a low-interest policy led to a fall in long-term U.S. Treasury yields and, in turn, added to selling pressure on the dollar, market sources said.
Dollar selling came to a pause in early Tokyo trading. But the greenback accelerated its descent later in the morning, hitting levels below ¥108.80.
The dollar briefly rallied above ¥109.20 in the afternoon, as the Nikkei stock average recouped some of its lost ground. But an official at a major Japanese bank said the dollar’s upturn was “only attributable to short-covering.”
The U.S. unit’s topside against the yen remained heavy amid heightened tensions over North Korea, market sources said. “The current situation does not allow aggressive dollar purchases versus the yen,” another bank official said.
The cautious mood could strengthen next week ahead of the French presidential election, traders said.