Business / Financial Markets | CURRENCY MARKET

Dollar closes at ¥112.30 after Tokyo stock slump

JIJI

The dollar stayed on a weak note around ¥112.30 in late Tokyo trading Thursday after falling below ¥112 on sales reflecting a Tokyo stock slump.

At 5 p.m. the dollar stood at ¥112.30-30, down from ¥112.50-50 at the same time Wednesday. The euro was at $1.1400-1400, down from $1.1429-1429, and at ¥128.03-04, down from ¥128.58-59.

The dollar was hit by safe-haven yen buying from early trading following an overnight rout on Wall Street, traders said.

The greenback dropped near ¥111.80 as the benchmark Nikkei stock average opened sharply weaker, but its downside was supported by dollar buying by Japanese importers.

After briefly rising above ¥112.10, the dollar fell below ¥112 again past mid-afternoon trading as the 225-issue Nikkei average sank deeper.

But in later trading the dollar rose to around ¥112.30, supported by an upturn in Chinese stocks and higher U.S. long-term interest rates.

Risk aversion among market participants “waned following a rebound in Chinese stocks and U.S. index futures prices,” an official at a bank-linked securities firm said.

“The dollar-yen pair was resilient, considering the size of the drop in the Nikkei average,” said an official at a Japanese bank.