Business / Financial Markets | CURRENCY MARKET

Dollar slips through ¥111.30 in Tokyo

JIJI

The dollar fell below ¥111.30 in Tokyo trading Tuesday, battered by lower U.S. long-term interest rates.

At 5 p.m., the dollar stood at ¥111.26-26, down from ¥111.45-45 at the same time Monday. The euro was at $1.1265-1265, up from $1.1228-1229, and at ¥125.34-34, up from ¥125.14-15.

The dollar rose close to ¥111.60 after moving around ¥111.50 in early hours. But the greenback slipped through ¥111.30 in line with the Nikkei 225 stock average’s drop later in the morning.

Following a slight rebound, the dollar eased back to levels below ¥111.30 on selling prompted by a drop in U.S. 10-year interest rates in off-hours trading.

“Position-squaring selling emerged when the dollar topped ¥111.50,” an official of a foreign exchange margin trading service firm said.

“But the U.S. currency did not fall further due to a lack of follow-through selling,” the official added.

A currency broker said trading became subdued ahead of a European Union summit and the release of the minutes of the U.S. Federal Reserve’s Federal Open Market Committee meeting last month, both set for Wednesday.