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Dollar around ¥113 in late Tokyo after shedding losses


The dollar was around ¥113 in Tokyo trading late Tuesday after shedding earlier losses, backed by Japanese stocks’ resilience.

At 5 p.m., the dollar stood at ¥112.95-95, little changed from ¥112.99-113.00 at the same time Monday. The euro was at $1.0875-876, down from $1.0956-0957, and at ¥122.85-86, down from ¥123.79-81.

The greenback took a dive from above ¥112.60 to below ¥112.20 in the early morning, due apparently to large-lot sell orders amid thin trading, traders said.

After climbing back above ¥112.50, the dollar again dropped below ¥112.20 following the midmorning announcements of weak Chinese manufacturing data.

The Chinese manufacturing industry purchasing managers’ index for February sank to the lowest level since November 2011, remaining below the boom-or-bust threshold of 50 for the seventh consecutive month.

Another Chinese manufacturing PMI, the Caixin/Markit index, was also weak.

Even after China’s central bank took an additional monetary easing step on Monday, “worries over the Chinese economy are persistent,” said an official at a foreign exchange brokerage firm.

But in the afternoon, the U.S. currency was on a firmer note as the benchmark 225-issue Nikkei stock average recouped earlier losses to finish higher on the Tokyo Stock Exchange.

Rises in Chinese stocks and New York crude oil futures helped the dollar extend gains later, traders said.

“Risk-averse sentiment appears to have receded for now,” said another foreign exchange broker, adding that the dollar could advance further on a strong reading in the U.S. Institute for Supply Management’s manufacturing business index for February, to be released later on Tuesday.

Meanwhile, the dollar’s topside versus the yen was pressured by the euro’s weakness against the Japanese currency on speculation that the European Central Bank will loosen monetary policy further at a policy-setting meeting next week, traders said.