Business / Financial Markets | CURRENCY MARKET

Dollar sharply lower around ¥107.90 after Tokyo stock drop

JIJI

The dollar was sharply lower around ¥107.90 in late Tokyo trading on Thursday, weighed down by a drop in Japanese stock prices.

At 5 p.m. the dollar stood at ¥107.92-92, down from ¥108.89-90 at the same time on Wednesday. The euro was at $1.1540-1540, up from $1.1468-1468, and at ¥124.57-57, down from ¥124.88-89.

In overseas trading Wednesday, the dollar plunged to levels around ¥108 after senior officials at the Federal Reserve signaled the U.S. central bank’s stance of cautiously considering additional interest rate hikes.

After trading around ¥108.10-20 in early Tokyo trading Thursday, the dollar dropped to around ¥107.90 in the midmorning in line with a decline in the Nikkei stock average on the Tokyo Stock Exchange. It moved around the level for the rest of the morning.

The dollar-yen pair became dormant in the afternoon.

A wait-and-see mood grew in late trading ahead of a speech by Fed Chairman Jerome Powell later on Thursday, traders said. If Powell suggests a cautious stance on additional rate hikes, the dollar could be pressured further, a foreign-exchange broker said.

Meanwhile, an official at a bank-affiliated securities firm said, “The dollar’s downside was supported in the upper ¥107 zone,” noting that the U.S. currency attracted bargain buying in that range.