The dollar was weaker around ¥113.80 in Tokyo trading late Friday, hit by selling prompted by an overnight fall in U.S. stock prices and sales to adjust positions.
At 5 p.m., the dollar stood at ¥113.83, down from ¥114.30 at the same time on Thursday. The euro was at $1.1507, up from $1.1493, and at ¥130.99, down from ¥131.36.
The dollar moved around ¥113.90 in early trading after meeting with selling in overnight trading overseas, reflecting a drop in U.S. equity prices stemming from a rise in long-term interest rates, traders said.
After rising to levels around ¥114 in midmorning trading thanks to purchases from domestic importers, the greenback fell back later to around ¥113.90 as the buying ran its course, traders said.
The U.S. currency traded narrowly around ¥113.90 in afternoon trading before falling below the threshold in late hours due to position-adjustment selling ahead of the three-day weekend in Japan, market sources said.
“Selling to adjust positions is likely to increase in overseas trading” as investors have built dollar-long positions too much, an official of a foreign exchange margin trading service company said.
The official also said, “The dollar is expected to come under selling against the yen if U.S. jobs data for September, due out later Friday, turn out to be weaker than expected.”
But if a strong economic indicator helps drive interest rates higher in the United States, stock prices may fall further, which in turn may push up the yen versus the dollar, an official of a Japanese bank said.