Dollar Edges Down To Lower 109 Yen On Fall In Asian Shares

By Japan Economic Newswire

The U.S. dollar edged down to the lower 109 yen range Tuesday in Tokyo on falls in Asian shares following news reports that the United States formally requested Canada to extradite the chief financial officer of Chinese telecommunication giant Huawei Technologies Co. currently awaiting further court hearings.

At 5 p.m., the dollar fetched 109.42-43 yen compared with 109.55-65 yen in London at 4 p.m. and 109.57-59 yen in Tokyo at 5 p.m. Monday. U.S. financial markets were closed Monday for a national holiday. It moved between 109.37 yen and 109.69 yen during the day, changing hands most frequently at 109.63 yen.

The euro was quoted at $1.1353-1354 and 124.23-27 yen against $1.1360-1370 and 124.55-60 yen in London and $1.1384-1386 and 124.74-78 yen in Tokyo late Monday afternoon.

The dollar moved in a narrow range in the morning in the absence of fresh trading cues but later slipped against the yen, perceived as a safe-haven asset, following declines in Japanese and Chinese stocks.

Asian shares were dragged down as investors feared that U.S.-China trade tensions could be intensified following media reports that Washington has requested Ottawa to hand over Huawei CFO Meng Wanzhou, who was arrested in Canada in December at the request of the United States for allegedly violating U.S. sanctions on Iran, dealers said.

“The reports on Huawei’s CFO rekindled concerns over a trade conflict between Washington and Beijing, capping the upside of the U.S. unit,” said Kengo Suzuki, chief foreign exchange strategist at Mizuho Securities Co.

Some investors also unloaded the dollar on falls in long-term U.S.Treasury yields and U.S. stock futures in off-hours trading, Suzuki said, adding concerns remained the prolonged partial shutdown in the U.S. federal government may hurt the country’s economic growth.

This article provided by NewsEdge.