The dollar shed most of its early gains and moved around ¥112.20 in Tokyo trading late Thursday, due to selling triggered by a drop in Chinese stock prices.
At 5 p.m., the dollar stood at ¥112.16-17, up slightly from ¥112.10-11 at the same time Wednesday. The euro was at $1.1022-1023, up from $1.0997-0997, and at ¥123.63-64, up from ¥123.28-29.
After moving around ¥112.10-20 in early trading, the dollar briefly fell to around ¥111.90 due to profit-taking. It later rose back above ¥112, inspired by higher Tokyo stock prices after overnight rises in crude oil prices and U.S. equities. As Tokyo stocks extended gains in the afternoon, the greenback advanced to around ¥112.60.
“The dollar’s rise apparently came as speculative players who had bought the yen in recent sessions moved to sell the Japanese currency,” a currency broker official said.
But the dollar failed to maintain its upward momentum in late hours, giving up much of its earlier gains to move around ¥112.20 as stocks fell in Shanghai.
“Uncertainty over the course of the Chinese economy and crude oil prices has not been dispelled,” one market source said.
An official of a major Japanese bank said that “investors are finding it difficult to tilt their positions significantly either way” before Group of 20 nations met in Shanghai on Friday.