Business / Financial Markets | CURRENCY MARKET

Dollar falls below ¥109.60 in Tokyo trading


The dollar softened below ¥109.60 in Tokyo trading Wednesday amid a dearth of strong incentives.

At 5 p.m., the dollar stood at ¥109.51, down from ¥109.67 at the same time on Tuesday. The euro was at $1.1213, down from $1.1238, and at ¥122.78, down from ¥123.25.

The dollar fell below ¥109.60 following a weak start of the benchmark Nikkei stock average. But the greenback rose close to ¥109.70 in midmorning trading, supported by buying by Japanese importers, traders said.

After moving around ¥109.60 until late afternoon, the dollar met with enhanced selling vis-a-vis the yen while the Japanese currency was appreciating against the euro following a plunge in German long-term interest rates, an official at a foreign exchange margin trading service firm said..

Although the Nikkei average took an upturn and extended gains in the afternoon, the dollar-yen pair reacted little.

“Investors were sitting on the fences due to a lack of incentives provided by U.S.-China and Japan-U.S. trade relations,” a currency broker said.

Market attention is focused on the announcement of U.S. retail sales in April later on Wednesday, traders said.