Business / Financial Markets | CURRENCY MARKET

Dollar weakens to around ¥109.20 in Tokyo

JIJI

The dollar traded on a weak note around ¥109.20 in Tokyo on Tuesday as investors continued to refrain from active trading ahead of key events this week.

At 5 p.m., the dollar stood at ¥109.23-23, down from ¥109.39-40 at the same time Monday. The euro was at $1.1434-1435, up from $1.1405-1405, and at ¥124.90-91, up from ¥124.77-77.

The greenback moved mainly around ¥109.20-30 in early trading, after yen buying gained strength in overseas markets overnight amid a risk-off mood traced to growing concerns over a slowdown of the Chinese economy, traders said.

The U.S. currency dropped below ¥109.20 in the midmorning, following a weak start of the Nikkei 225 stock average.

After drifting around ¥109.20, the dollar rose above ¥109.30 in midafternoon trading in step with an upturn of the Nikkei.

In late trading, the dollar lost steam again while market players sat on the fence ahead of a vote by Britain’s parliament on an amendment to Prime Minister Theresa May’s deal on Brexit and the start of a two-day policy-setting meeting of the U.S. Federal Reserve, both on Tuesday, traders said.

“Dollar sell orders are lining up around the psychologically important ¥110 level,” a think tank official said.

If the key events turn out to be positive for the dollar, the U.S. currency may attract buying and test its upside, the official said.