Business / Financial Markets | CURRENCY MARKET

Dollar weaker around ¥113 in Tokyo trading


The dollar eased to around ¥113 in Tokyo trading Wednesday, dampened by media reports predicting that the U.S. opposition Democratic Party would regain a House majority in midterm elections.

At 5 p.m. the dollar stood at ¥113.06-06, down from ¥113.33-33 at the same time Tuesday. The euro was at $1.1453-1453, up from $1.1413-1413, and at ¥129.49-49, up from ¥129.34-34.

After moving around ¥113.40 in early trading, the dollar fell below ¥113 following media reports that Democrats took the upper hand over Republicans in the House of Representatives race.

Later in the morning, the greenback shot up to around ¥113.80 as Republicans were reported to be catching up with Democrats to keep their control of both chambers of Congress.

But the dollar bowed to stepped-up selling after it became certain that the House would be controlled by Democrats and the Senate by Republicans, traders said.

The U.S. currency “met with selling to square dollar-long positions built on the positive speculation for Republicans,” a Japanese bank official said.

The dollar was also pressured by a drop in long-term U.S. interest rates, according to a securities firm official.