Business / Financial Markets | CURRENCY MARKET

Dollar slightly weaker around ¥112.40 in late Tokyo trading

JIJI

The dollar was marginally softer around ¥112.40 in Tokyo trading late Wednesday in tandem with a slide in Japanese shares.

At 5 p.m., the dollar stood at ¥112.40-40, down from ¥112.52-52 at the same time Tuesday. The euro was at $1.1397-1397, up from $1.1357-1357, and at ¥128.11-11, up from ¥127.80-80.

A fall in Japan’s benchmark Nikkei stock average and a drop in long-term U.S. interest rates in off-hours trading made currency market players risk averse, pushing down the dollar against the yen.

The Nikkei closed below 21,000 for the first time since March 26.

The yen made a rally against the dollar, but the rebound was limited due to news reports that U.S. President Donald Trump would allow a partial shutdown of government, an official at a foreign exchange brokerage house said.

In late trading, market players waited to see the outcome of the U.S. Federal Reserve’s monetary policy meeting, due later on Wednesday.

Players “are hard to tilt their positions either way” as an interest rate increase by the Fed is only 70 percent factored into the market, an official of a foreign exchange margin trading service firm said.