The dollar weakened below ¥111.90 in Tokyo trading Thursday, hurt by a downturn in Tokyo stocks.
At 5 p.m., the dollar stood at ¥111.84-84, down from ¥112.01-01 at the same time Wednesday. The euro was at $1.1271-1271, down from $1.1317-1317, and at ¥126.03-04, down from ¥126.72-73.
After moving above ¥112 in the early morning, the dollar fell below ¥111.90 in the wake of the benchmark Nikkei stock average’s dismal start, snapping its five-session rally.
Although the greenback showed some resilience as the dip prompted repurchases, it was pressured by a drop in U.S. long-term interest rates in off-hours trading in the afternoon.
“Investors stepped up moves to square positions ahead of the special 10-day holiday in Japan from April 27,” said an official at major Japanese bank.
An official at a major securities firm noted a continued “risk-on” mood. But a foreign exchange report by the U.S. Treasury Department “looms ahead,” a currency broker pointed out.