Business / Financial Markets | CURRENCY MARKET

Dollar softer around ¥112.90 in late Tokyo trading


The dollar was softer around ¥112.90 in late Tokyo trading Thursday, hurt by selling that was inspired by a fall in Tokyo stocks.

At 5 p.m. the dollar stood at ¥112.89-90, down from ¥113.19-19 at the same time Wednesday. The euro was at $1.1359-1359, up from $1.1346-1347, and at ¥128.24-24, down from ¥128.44-44.

The dollar fell below ¥113 on position-squaring selling, after exceeding ¥113.30 in overnight trading abroad thanks to stronger-than-expected readings of Automatic Data Processing Inc.’s U.S. employment report for October, released Wednesday, traders said.

In midmorning trading in Tokyo, the greenback fell below ¥112.80 following a drop in the benchmark 225-issue Nikkei average.

The dollar showed some resilience around ¥112.90 in late trading, as the yen met with sales reflecting receding risk aversion following the yuan’s stable moves.

The U.S. currency “has grown susceptible to selling after month-end buying ran its course,” an official at a Japanese bank said.

Another official at a major Japanese bank cited a rise in long-term U.S. interest rates as a dollar-positive factor.

“The dollar will advance against the yen” if the U.S. Institute for Supply Management’s manufacturing index for October, due out later on Thursday, turns out strong, they added.