Business / Financial Markets | CURRENCY MARKET

Dollar falls to around ¥112 in late Tokyo trading

JIJI

The dollar was lower around ¥112 in late Tokyo trading Friday, hurt by sluggish Tokyo stock prices and euro buying against the U.S. currency.

At 5 p.m., the dollar stood at ¥112.01, down from ¥112.30 at the same time Thursday. The euro was at $1.1375, down from $1.1400, and at ¥127.42, down from ¥128.03.

The dollar rose above ¥112.40 in midmorning trading, assisted by a robust start of the 225-issue Nikkei average and dollar buying by Japanese importers, traders said.

The greenback dropped below ¥112.20 early in the afternoon as the Nikkei average sank into negative territory. In late trading, the currency fell to levels around ¥112 mainly on euro buying against the dollar.

“The mood of risk aversion continued amid unstable movements of the Nikkei average and Chinese stocks,” an official of a foreign exchange margin trading service firm said.

But a currency market broker said, “Compared with stocks, the dollar was firm against the yen.”

The dollar’s downside was supported around ¥112, said an official of a different foreign exchange margin trading service firm.

But the dollar “may test its downside versus the yen” if stock prices in major countries drop again, the broker said.