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Dollar eases to around ¥112.60 in Tokyo

JIJI

The dollar was easier at around ¥112.60 in Tokyo trading late Tuesday, following an overnight fall caused by position-adjustment selling.

At 5 p.m., the dollar stood at ¥112.62-63, down from ¥112.98-99 at the same time Monday. The euro was at $1.1856-1857, up from $1.1849-1850, and at ¥133.54-56, down from ¥133.88-89.

The greenback rose to levels around ¥113 in Tokyo the previous day after the weekend passage of a tax reform bill by the U.S. Senate. But in New York trading later, the U.S. currency fell back to as low as below ¥112.40, due partly to U.S. stocks’ top-heaviness, traders said.

The dollar briefly sagged below ¥112.40 again in early Tokyo trading Tuesday, but it later rebounded above ¥112.50, partly supported by a rise in long-term U.S. Treasury yields in off-hours trading.

“Overall, the dollar remained in a narrow range amid a persistent wait-and-see mood,” an official at a foreign exchange brokerage house said.

Traders are awaiting developments over the U.S. tax reform and media reports on the U.S. probe into alleged collusion between Donald Trump’s 2016 presidential campaign team and Russian officials.

Furthermore, the release of key economic indicators, including U.S. job data for November, later this week is “keeping traders from both buying and selling (the dollar) actively,” an official at a major bank said.