Business / Financial Markets | CURRENCY MARKET

Dollar weaker around ¥113.30 in late Tokyo trading

JIJI

The dollar was weaker at around ¥113.30 in late Tuesday trading in Tokyo as lower stock prices in Europe and Japan sapped risk appetite.

The dollar briefly fell below ¥113 in the morning due to a slide in the Nikkei 225 stock average.

Later, a rise in U.S. long-term interest rates in off-hours trading lifted the dollar close to ¥113.40 in late hours.

At 5 p.m., the dollar was at ¥113.31-31, down from ¥113.83-83 at the same time Friday. The Tokyo foreign exchange market was closed Monday for a national holiday.

The euro was at $1.1474-1474, down from $1.507-1507, and at ¥130.01-02, down from ¥130.99-131.01.

“A fall in U.S. and European stocks added to the risk-off mood among market players, prompting buying of the yen,” an official at a foreign exchange margin trading service firm said.

In the afternoon, a wait-and-see mood prevailed, traders said. “The relative stability of Chinese stocks helped ease the pressure on the dollar against the yen,” an official at a foreign exchange brokerage house said.

“Whether the dollar will go up near ¥114 again or fall depends on U.S. stock price movements,” an official at a foreign exchange margin trading service firm said.