Business / Financial Markets | CURRENCY MARKET

Dollar drops below ¥108.30 in Tokyo trading

JIJI

The U.S. dollar fell below ¥108.30 in Tokyo trading Tuesday, dragged down by drops in the Australian dollar and Tokyo stock prices.

At 5 p.m., the U.S. dollar stood at ¥108.23-28, down from ¥108.56-56 at the same time Monday. The euro was at $1.1237-1237, up from $1.1213-1213, and at ¥121.64-65, down from ¥121.74-74.

The U.S. currency fell below ¥108.40 in the morning as the Australian dollar plunged against the yen after the minutes of the Australian central bank’s policy-setting meeting earlier this month suggested a fresh interest rate cut possibility.

The U.S. greenback lost further ground in the afternoon, in step with the Nikkei stock average and U.S. long-term interest rates in off-hours trading, traders said.

“Risk-averse selling hit the dollar-yen pair,” an asset management firm official said.

“Investors refrained from active trading ahead of the U.S. Federal Reserve’s Federal Open Market Committee meeting” starting later on Tuesday, a bank official said.

“If the Fed fails to show a dovish stance at the meeting, dollar buybacks may emerge,” a securities house official said.