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Greenback drops below ¥102.10

JIJI

The dollar was easier at under ¥102.10 in Tokyo on Thursday, dampened by sales reflecting a fall in Japanese stock prices.

At 5 p.m., the dollar was quoted at ¥102.06-08, down from ¥102.28-28 at the same time Wednesday. The euro stood at $1.3531-3533, down from $1.3537-3542, and at ¥138.13-13, down from ¥138.46-49.

The dollar remained weak against the yen in Tokyo after meeting with sales on sluggish European and U.S. stocks overnight, traders said.

After the key Japanese equity market indicators tumbled, dollar sales intensified, sending the currency around ¥101.95 temporarily in the morning, according to the traders.

But the greenback later trimmed its losses on purchases from individual investors and Japanese importers, as well as on some resilience shown by Japanese stock prices, the traders added.

The Nikkei stock average lost as much as some 200 points during the day’s trading. But such development “was within what had been expected,” a currency market broker said.

“Individual investors engaging in margin foreign exchange trading showed strong interest in buying (dollars) on dips,” an official at a margin trading service company said.

The dollar-yen sector is going through an adjustment phase as expected by many, a currency market broker said.

In the morning, the Japanese government published core machinery order data for April, while the Australian government announced the country’s employment report for May. Neither statistics affected the dollar-yen sector very much, according to traders.