Business / Financial Markets | CURRENCY MARKET

Greenback dips below ¥111.10 in Tokyo trading, penned in by Chinese stocks and euro's advance

JIJI

The dollar weakened below ¥111.10 in Tokyo trading Thursday, pressured by a retreat in Chinese stocks retreat and an advance in the euro.

At 5 p.m., the dollar stood at ¥111.08-09, down from ¥111.18-18 at the same time Wednesday. The euro was at $1.1281-1281, up from $1.1265-1266, and at ¥125.32-33, up from ¥125.25-26.

After trading at ¥111.90-10, the dollar moved up on buying by Japanese importers in midmorning trading, later easing to around ¥111.05.

A currency broker said the dollar “moved on a relatively firm note, supported by the Nikkei stock average’s rebound, real-demand backed dollar purchases and a halt to a drop in U.S. long-term interest rates.”

But the U.S. currency failed to go higher due to selling induced by Chinese stocks’ sluggishness and the euro’s appreciation, traders said.

“It’s difficult for investors to tilt positions prior to the start of Japan-U.S. trade negotiations and the 10-day holiday in Japan,” an asset management firm official said, referring to this year’s extra long Golden Week.