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Dollar slumps below ¥113 in Tokyo


The dollar slipped below ¥113 in Tokyo trading on Tuesday, chiefly pressured by falls on stock markets in Japan and China.

At 5 p.m., the dollar stood at ¥112.93-94, down from ¥113.71-71 at the same time Monday. The euro was at $1.1036-1036, up from $1.0968-0968, and at ¥124.64-65, down from ¥124.72-73.

After moving around ¥113.40 in early trading, the dollar came under pressure in line with a drop in Tokyo stock prices. It fell to around ¥112.70-80 in midmorning trading, partly hit by stop-loss selling, market sources said.

The U.S. currency later lost further ground as market players became risk-averse due to declines in Chinese stock prices.

“Currency players stepped up dollar selling as Chinese stocks fell following drops in Tokyo stock prices,” an official at a foreign exchange broker said.

The dollar’s fall against the yen also reflected its weakness against the currencies of resource-rich countries, such as Australia and Canada, on the back of higher crude oil prices, market sources said.

The greenback later cut early losses and bounced back to around ¥113.20 as Tokyo stocks showed some resilience in the afternoon, but the rebound was weak as there was no more than short covering.

In late hours, the dollar slipped below ¥113 again, due to selling for position adjustment.

“The dollar-yen rate currently lacks a clear direction,” an official at a foreign exchange margin trading service firm said, adding that the market was led by position-adjustment moves.