Business / Financial Markets | CURRENCY MARKET

Dollar slightly weaker below ¥112.30 in late Tokyo trading


The dollar was slightly weaker below ¥112.30 in Tokyo trading late Thursday, hit by selling to lock in profits.

At 5 p.m. the dollar stood at ¥112.21-21, down from ¥112.32-32 at the same time on Wednesday. The euro was at $1.1697-1697, down from $1.1700-1700, and at ¥131.26-27, down from ¥131.41-42.

After moving above ¥112.30 in the early morning, the dollar dropped to levels around ¥112.10 toward noon after being hit by selling by Japanese exporters.

In the early afternoon, the U.S. currency rose above ¥112.20 in line with a rise in the benchmark Nikkei 225 average.

The dollar fell below ¥112.10 after news broke around 2 p.m. that Prime Minister Shinzo Abe won a party election to continue leading the ruling Liberal Democratic Party, but the greenback soon recovered above ¥112.10.

“As the Nikkei average had already priced in Abe’s victory and did not go up, profit-taking hit the dollar” after the LDP leadership election, a currency broker said.

In late trading, the dollar gained further ground and rose to around ¥112.20, helped by higher starts of European stock markets and a rise in U.S. long-term interest rates.