Business / Financial Markets | CURRENCY MARKET

Dollar weakens to below ¥110.20 in late Tokyo trades


The dollar was weaker below ¥110.20 in Tokyo trading late Monday, affected by weakness in Japanese and European stocks amid Turkey’s financial crisis.

At 5 p.m., the dollar stood at ¥110.18, down from ¥110.67 at the same time on Friday. The euro was at $1.1373, down from $1.1464, and at ¥125.33, down from ¥126.89.

“A risk-off mood is strengthening globally” out of concerns that Turkey-linked debts held by European financial institutions may turn sour following the lira’s sharp depreciation, an official at a bank-affiliated securities firm said.

The dollar fell below ¥110.20 from levels around ¥110.70 in the morning after Japan’s benchmark Nikkei 225 average plunged below the psychological threshold of 22,000 amid concerns about Turkey’s turmoil.

The dollar later rose back above ¥110.30 briefly after Turkey’s central bank issued a statement in which it pledged to provide all the liquidity banks need and take all necessary measures to maintain financial stability.

But a slide in European stocks pushed the dollar below ¥110.20 again in late trading.

Market participants are paying attention to whether the dollar will slip below ¥110, as its technical support line is ¥109.90, the securities firm official said.