Dollar cuts gains to trade below ¥113 in Tokyo

The dollar gave up some of its early gains to move below ¥113 in Tokyo trading late Friday, with a wait-and-see mood growing before Group of 20 top finance officials start their two-day meeting later in the day.

At 5 p.m., the dollar stood at ¥112.87-88, still up from ¥112.16-17 at the same time Thursday. The euro was at $1.1057-1057, up from $1.1022-1023, and at ¥124.81-82, up from ¥123.63-64.

The dollar was firmer around ¥112.90 in early trading, attracting buybacks on the back of overnight rises in crude oil prices and higher stocks in Europe and the United States.

The dollar briefly topped ¥113.20, also supported by a solid performance of Tokyo stocks. But it was hit by selling on a rally in midmorning trading and slipped to levels around ¥112.70.

In the afternoon, the dollar drew renewed purchases and rose back to near ¥113. The U.S. currency, however, dropped to around ¥112.60 after Tokyo stocks shed much of their early gains toward the close.

“Since the dollar at one point rose nearly one yen from the previous day’s level in Tokyo trading, it was pressured by selling on a rally,” an official at a currency broker said.

In late hours, the dollar was stuck in a narrow range below ¥113, with investors retreating to the sidelines ahead of the meeting in Shanghai of the finance ministers and central bank chiefs of the G-20 advanced and emerging economies.

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