The dollar was weaker below ¥111.80 in Tokyo trading late Monday, weighed down by stock price falls in Japan.
The U.S. currency lost further ground after the close of the Tokyo stock market due to renewed selling prompted by U.S. Treasury Secretary Steven Mnuchin’s remark on Saturday expressing his intention to urge Japan to include a currency clause in a proposed bilateral trade agreement on goods, or TAG.
At 5 p.m., the dollar stood at ¥111.79-79, down from ¥112.32-32 at the same time Friday. The euro was at $1.1567-1568, down from $1.1594-1594, and at ¥129.32-32, down from ¥130.23-23.
After rising above ¥112.20 in early trading, the dollar came under selling pressure and briefly fell below ¥112 in midmorning trading as the 225-issue Nikkei average accelerated its downswing after a weak start.
The dollar rose back above ¥112.10 in line with a recovery in the Nikkei toward noon, but it moved on a weak note in the afternoon, tracking drops in Tokyo stock prices.
After European players joined trading in late hours, the dollar fell to around ¥111.70, a one-month low, due to rekindled worries about the possible introduction of a currency clause.
Concerns over a currency clause drove Tokyo stocks and the dollar lower, an official of a bank-affiliated securities firm said.
“Some investors refrained from active trading to weigh up” the United States’ seriousness about a currency clause, an official of a major Japanese bank said.