Greenback plunges below ¥98


The dollar hovered on a weak note mostly below ¥98 in Tokyo trading Tuesday as active trading was held in check in the midst of Golden Week.

At 5 p.m., the dollar stood at ¥97.80-80, down from ¥98.58-60 at the same time Friday. The euro was at $1.3077-3079, up from $1.3037-3039, and at ¥127.92-94, down from ¥128.54-56.

The Tokyo market was closed Monday for Showa Day and will likewise be closed Friday and next Monday.

In early trading Tuesday, the dollar traded below ¥98, carrying over its weak tone from overseas trading Monday.

It briefly rose to around ¥98.10, supported by buy orders from importers for month-end settlement purposes, market sources said. Selling by exporters was not so strong, one broker said.

But after a wave of buying subsided, the dollar slipped below ¥98.

“The market lacked factors to push the dollar higher,” an official of a major Japanese bank said.

Some market participants attributed the dollar’s weakness against the yen to unfavorable readings of recent U.S. economic data, including gross domestic product data for January-March that failed to meet market projections.

According to data released Friday, GDP grew 2.5 percent from the previous quarter in real terms on an annualized basis, against a consensus market estimate of 3.0 percent growth.

Although there is no change in market expectations of a rise of the dollar against the yen, some investors were disappointed by the U.S. GDP report, market sources said.