/ |

Dollar weakens to around ¥110.60 in Tokyo

JIJI

The dollar was weaker at around ¥110.60 in Tokyo trading late Tuesday, losing ground due to position-adjustment selling.

At 5 p.m., the dollar stood at ¥110.57-58, down from ¥110.77-79 at the same time Monday. The euro was at $1.1807-1808, against $1.1809-1810, and at ¥130.57-57, against ¥130.83-83.

The dollar briefly slipped below ¥110.60 on a slide in Japanese stocks after moving tightly at around ¥110.70 in early trading in the absence of fresh trading incentives.

“While there was no specific market-moving news, the dollar was hit by a flow of selling” when Japan’s benchmark Nikkei stock average fell, a currency brokerage official said.

The dollar was dragged down by profit-taking and position-adjustment selling before the release Friday of U.S. consumer price data for July, an official at a foreign exchange brokerage service company said.

Still, the dollar resisted falling further, rising back to levels around ¥110.60 later thanks partly to buying on dips, market sources said.

“There were no specific incentives to step up dollar selling,” an official at a foreign exchange margin trading service firm said.