Business / Financial Markets | CURRENCY MARKET

Dollar hits five-month low in Tokyo trading

JIJI

The dollar hit a five-month low below ¥107.60 in Tokyo trading Thursday, after the Bank of Japan decided to keep its monetary policy unchanged.

At 5 p.m., the dollar stood at ¥107.67, down from ¥108.38-42 at the same time Wednesday. The euro was at $1.1297, up from $1.1200, and at ¥121.64, up from ¥121.39.

The dollar remained under selling pressure after the U.S. Federal Reserve suggested an interest rate cut this year. Around midmorning, dollar-selling was boosted by the benchmark U.S. long-term interest rate’s drop below 2 percent in off-hours trading, pushing the greenback down to ¥107.56, the lowest level since Jan. 4.

After bouncing back above ¥107.70 later in the morning, the dollar grew top-heavy due to selling prompted by the no policy change decision announced after the end of the BOJ’s two-day policy-setting meeting.

In the afternoon, the U.S. currency remained almost static until BOJ Gov. Haruhiko Kuroda told a news conference that the bank will not hesitate to consider fresh easing measures if consumer prices lose upward momentum.

The comment prompted dollar-buying against the yen, traders said.