Business / Financial Markets | CURRENCY MARKET

Dollar dips to below ¥109.50 in Tokyo

JIJI

The dollar was weaker below ¥109.50 in Tokyo trading Tuesday, pressured by lower long-term interest rates in the United States.

At 5 p.m., the dollar stood at ¥109.43-44, down from ¥109.57-58 at the same time Monday. The euro was at $1.1353-1353, down from $1.1385-1386, and at ¥124.24-25, down from ¥124.75-77.

After moving around ¥109.60, the dollar fell to around ¥109.50 toward noon as a risk-averse mood grew after Asian stocks expanded their losses, traders said.

The greenback lost further ground in the afternoon, in line with a fall in the benchmark U.S. 10-year Treasury yield in off-hours trading amid a dearth of fresh trading incentives.

Players turned risk-averse after a media report that the United States informed Canada of its plan to officially seek the extradition of Huawei Technologies Co. Chief Financial Officer Meng Wanzhou, a bank-linked securities firm official said.

The official noted that the U.S. move was taken as a warning against China ahead of ministerial-level trade talks between the world’s two biggest economies later this month.

If the European and Japanese central banks show bleak economic outlooks at their respective policy-setting meetings as did the International Monetary Fund on Monday, “investor concerns about a global economic slowdown will grow and yen buying would gain ground,” an official at a foreign exchange margin trading service firm said.