Business / Financial Markets | CURRENCY MARKET

Dollar weakens to ¥106.24 in Tokyo after stock selloff spurred by U.S. yield curve inversion

JIJI

The dollar fell to around ¥106 in Tokyo trading Thursday, weighed down by growing concerns about a global recession.

At 5 p.m., the dollar stood at ¥106.24-25, down from ¥106.44-44 at the same time Wednesday. The euro was at $1.1147-1148, down from $1.1179-1180, and at ¥118.44-45, down from ¥119.00-00.

The dollar dropped close to ¥105.70 in the early morning in the wake of the U.S. 10-year Treasury yield falling below the two-year yield for the first time in 12 years.

After retaking the ¥106 line on buying by Japanese importers for settlement purposes, the greenback moved mostly in a range between ¥105.90 and ¥106.30 later, although it topped ¥106.70 at one point on speculative buying.

“Pressured by recession concerns stemming from gloomy Chinese and German economic data as well as the U.S. yield curve inversion, the topside of the dollar was heavy,” an official at a foreign-exchange margin trading firm said.

The official also said investors were waiting for U.S. economic indicators to be released later on Thursday, including retail sales for July and the New York state manufacturing index for August.