Business / Financial Markets | CURRENCY MARKET

Dollar weaker around ¥113.10 in late Tokyo trading

JIJI

The dollar was softer around ¥113.10 in Tokyo trading late Tuesday, hurt by sluggish local stock prices.

At 5 p.m., the dollar stood at ¥113.10-11, down from ¥113.46-47 at the same time Monday. The euro was at $1.1380-1380, up from $1.1368-1368, and at ¥128.72-72, down from 128.99-¥129.00.

After moving around ¥113.50-60 in early trading, the dollar fell to around ¥113.30 midway through the morning due to a drop in long-term U.S. interest rates in off-hours trading.

The greenback dropped to around ¥113.10 in the afternoon as the Nikkei 225 stock average expanded losses, traders said.

In late trading, the U.S. currency resisted falling further and fluctuated around the ¥113.10 line, thanks to a halt to the fall in long-term U.S. interest rates.

The dollar came under selling pressure versus the yen as an agreement between U.S. President Donald Trump and his Chinese counterpart, Xi Jinping, was regarded as “a mere postponement” of trade issues, an official of a foreign exchange margin trading service firm noted.

The official also said that dollar selling versus the yen from speculators emerged amid low market liquidity before the U.S. stock and bond markets will be closed Wednesday to mourn for former U.S. President George H.W. Bush, who died Friday.

“The dollar did not fall below ¥113 during Tokyo trading hours, but it rebounded only slightly” in late trading, a currency broker said, warning that the U.S. currency may fall further in European trading hours.