Business / Financial Markets | CURRENCY MARKET

Dollar falls to around ¥109.40 in Tokyo trading

JIJI

The dollar fell to around ¥109.40 in Tokyo on Tuesday, weighed down by position-squaring selling.

At 5 p.m., the dollar stood at ¥109.40-41, down from ¥109.57-57 at the same time Monday. The euro was at $1.1185-1186, down from $1.1196-1197, and at ¥122.38-38, down from ¥122.68-68.

After briefly rising above ¥109.60 in the midmorning, the dollar fluctuated around ¥109.50 for the most of afternoon trading amid a dearth of fresh trading incentives.

Late in the afternoon, the dollar eased to levels around ¥109.40 on selling to reduce dollar-long positions against the yen, traders said.

“Investors were waiting for news,” an official at a foreign-affiliated securities firm said.

Players are focusing on the U.S. personal consumption expenditures price index for April and China’s manufacturing purchasing managers index for May, both due out Friday, traders said.

“A strong PMI reading could send the dollar above ¥110,” an official at a major Japanese bank said. “But the greenback may drop below ¥109 if the reading turns out to be dismal.”