The dollar dropped below ¥117.50 in Tokyo trading on Tuesday, pressured by lingering concerns over China’s slowing economy.
At 5 p.m., the dollar was at ¥117.38-39, down from ¥118.24-25 at the same time Friday. The euro was at $1.0892-0892, up from $1.0885-0886, and at ¥127.87-88, down from ¥128.71-73. The Tokyo market was closed Monday for a national holiday.
The greenback dropped to around ¥117.20 at one point late in the afternoon due mainly to selling from European traders who took a cue from weak crude oil prices. It came under pressure from falling crude oil and Japanese stock prices, a securities house official said.
The dollar briefly topped ¥118 in midmorning trading thanks to purchases by Japanese importers.
But it failed to maintain its upward momentum and slipped below ¥118 due to heavy selling aimed at locking in profits, market sources said.
The dollar was also pressured after Tokyo stocks extended losses in the afternoon.
“The dollar’s topside was capped by a fall in Tokyo stock prices that stemmed from a ‘risk off’ mood among investors amid persistent concerns over the Chinese economy,” an official at a foreign exchange margin trading service firm said.
If uncertainty about China’s economy and crude oil prices settles down, dollar buying is expected to pick up, an official at a foreign exchange service firm said.