Business / Financial Markets | CURRENCY MARKET

Dollar weakens to around ¥108.70 in Tokyo


The dollar eased to around ¥108.70 in Tokyo trading Tuesday, dampened by a plunge in the Nikkei 225.

At 5 p.m., the dollar stood at ¥108.74-74, down from ¥108.93-93 at the same time Monday. The euro was at $1.2352-2352, down from $1.2403-2403, and at ¥134.33-34, down from ¥135.11-11.

After moving around ¥108.95 in the morning, the dollar advanced above ¥109.20 on a large-lot buying amid a rise in U.S. long-term interest rates in after-hours trading.

But the greenback met with selling in the afternoon as the Nikkei stock average’s loss expanded, slipping through ¥108.70.

“With the Nikkei giving up nearly 400 points, investors became risk-averse and moved to buy the yen,” a currency broker said.

The yen also attracted buying on a rise in long-term interest rates in Japan, an official at a foreign exchange margin trading service firm said.

In late hours, a wait-and-see mood spread ahead of U.S. President Donald Trump’s first State of the Union address, a Japanese bank official said.