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Dollar easier below ¥102 line

JIJI

The dollar stayed mostly below ¥102 in Tokyo trading Wednesday after diving to a three-week low around ¥101.50 in New York overnight on receding hopes for fresh monetary easing measures by the Bank of Japan.

At 5 p.m., the dollar was quoted at ¥101.98-98, down from ¥102.78-80 at the same time Tuesday.

The euro stood at $1.3803-3803, up from $1.3762-3763, and at ¥140.77-77, down from ¥141.46-49.

On Tuesday, dollar sales for yen accelerated in New York trading after BOJ Gov. Haruhiko Kuroda denied any immediate need for additional monetary stimulus at a news conference earlier that day, traders said.

In addition, unabated tensions in Ukraine pushed down U.S. long-term interest rates. These factors led the greenback to fall to ¥101.55 in New York Tuesday.

The weakness continued into Tokyo trading Wednesday. This, combined with a sharp fall in Tokyo stock prices, kept the dollar below ¥102 for much of the day, according to traders.

Kuroda’s comment “dimmed hopes for early additional monetary easing” by the BOJ, a currency market broker said, noting the contagion of the dollar-bearish mood from overseas markets.

Foreign players “are intensifying position-adjustment sales of dollars” after they revised their overly optimistic views on the U.S. economy, said a major Japanese bank official.

With the downward march of Japanese stock prices continuing, few players would be willing to buy dollars against yen for now, the official added.