Dollar moves above ¥113.60 in late Tokyo

The dollar moved on a firmer note around ¥113.60 in Tokyo trading late Monday, thanks to news reports about an agreement between Saudi Arabia and Russia to extend crude oil production cuts.

At 5 p.m., the dollar stood at ¥113.64-65, up from ¥113.59-60 at the same time Friday. The euro was at $1.0941-0945, up from $1.0863-0863, and at ¥124.34-41, up from ¥123.40-40.

The dollar fell to around ¥113 in early trading, following Friday’s release of weaker-than-expected U.S. economic data, including retail sales and the consumer price index, both for April.

The dollar was also pressured by the latest ballistic missile launch by North Korea on Sunday, market sources said.

The U.S. currency later attracted buybacks after Tokyo stocks recouped some of their early losses. It additionally drew regular buying from real demand-backed players for settlement purposes, traders said.

After moving in a narrow range around ¥113.30-40, the dollar drew renewed purchases in late hours and briefly surged above ¥113.70 as Saudi Arabia and Russia reportedly agreed to extend their crude oil output cuts for the first half of this year until March 2018, traders said.

Still, an official of a major Japanese bank said that “it appears difficult for the dollar to top ¥114 due to a halt to the recent rise in U.S. long-term interest rates.”

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