Business / Financial Markets | CURRENCY MARKET

Dollar falls below ¥106 in Tokyo trading as euro draws purchases

JIJI

The dollar traded on a weak note below ¥106 in Tokyo trading late Thursday, hurt by selling to buy the euro.

At 5 p.m., the dollar stood at ¥105.67, down from ¥106.45-46 at the same time Tuesday. The euro was at $1.2374, up from $1.2346-2347, and at ¥130.76, down from ¥131.43-44.

The Tokyo market was closed Wednesday for a national holiday.

The dollar was sluggish at levels around ¥105.90 in early trading Thursday.

It fell below ¥105.60 later due chiefly to stop-loss orders that ensued after it breached its lowest level marked in overseas trading on Wednesday, traders said.

The dollar rose back to levels around ¥105.90 in the afternoon, supported by a rally in Tokyo stock prices.

In late hours, however, the greenback lost ground against the yen as European players moved to purchase the euro versus the greenback.

The dollar “lost its upward momentum” against the yen after the U.S. Federal Reserve decided at its two-day policy-setting meeting to maintain its projection for two more interest rate hikes this year, fewer than the three expected by some market participants, an official of a bank-linked securities firm said.

Also, “the dollar was weighed down by concerns over intensified trade friction” with the United States involving the new U.S. tariffs on steel and aluminum imports taking effect Friday, an official at a currency broker said.