Business / Financial Markets | CURRENCY MARKET

Dollar weaker around ¥113.50 in late Tokyo trades

JIJI

The dollar stayed on a weak note around ¥113.50 in Tokyo trading late Thursday, as investors took a wait-and-see stance amid a dearth of fresh trading incentives.

At 5 p.m. the dollar stood at ¥113.52-53, down from ¥113.89-89 at the same time on Wednesday. The euro was at $1.1338-1338, up from $1.1292-1293, and at ¥128.70-70, up from ¥128.62-62.

In foreign trading the previous day the dollar fell to levels near ¥113.30, hurt by a decline in U.S. stocks and lower U.S. long-term interest rates.

The greenback rose above ¥113.60 in early Tokyo trading, helped by short-term yen selling to cash in gains, traders said.

The dollar moved on a firm note in midmorning trading on the back of dollar buying by Japanese importers.

But the greenback dropped to around ¥113.50 later in the morning and traded around the level in the afternoon.

The dollar’s topside was capped by a decline in the benchmark 225-issue Nikkei stock average, an official at a major Japanese bank said.

An official at a foreign exchange margin trading service firm suggested that uncertainty over U.S. policies after the Nov. 6 midterm elections also prompted dollar selling. In the elections the Democratic Party won back a majority in the House of Representatives, while the Republican Party maintained its control of the Senate.