Business / Financial Markets | CURRENCY MARKET

Dollar weaker below ¥112.60 in late Tokyo trading

JIJI

The dollar was softer below ¥112.60 in Tokyo trading late Tuesday, hurt by a slide in Japanese and U.S. stock prices.

At 5 p.m., the dollar stood at ¥112.52-52, down from ¥113.40-40 at the same time Monday. The euro was at $1.1357-1357, up from $1.1318-1318, and at ¥127.80-80, down from ¥128.36-37.

After moving around ¥112.80 in early trading, the dollar lost ground gradually in line with a fall in the Nikkei 225 average.

“The absence of follow-up buying made any rally in the dollar short-lived as sentiment was hurt by weak stock prices,” an official at a foreign exchange brokerage service firm said.

“The dollar may fall further against the yen in overseas trading hours if U.S. and European stocks retreat,” the official said.

A technical chart suggests that the dollar will fall below ¥112.50 briefly and explore its near-term bottom, an official of a foreign exchange margin trading service firm said.