Business / Financial Markets | CURRENCY MARKET

Dollar drifts below ¥106.50 in Tokyo after getting lift from euro

JIJI

The dollar eased below ¥106.50 in late Tokyo trading on Thursday after getting a lift from manufacturing news in France.

At 5 p.m., the dollar stood at ¥106.44-44, down from ¥106.54-55 at the same time Wednesday. The euro was at $1.1104-1105, up from $1.1092-1092, and at ¥118.20-21, compared with ¥118.18-19.

After moving around ¥106.60 in early trading, the dollar fell close to ¥106.40 later in the morning as long-term U.S. Treasury bond yields dropped in off-hours trading and the key Nikkei average lost steam on the Tokyo Stock Exchange after a firm start.

In the afternoon, the greenback declined to around ¥106.30 before climbing back above ¥106.40.

Explaining the late resilience of the dollar, an official of a Japanese bank said that euro-buying induced by the release of a robust reading from the French manufacturing purchasing managers index for August led to buying of the greenback.

The official said observers will likely keep a close tab on whether U.S. Federal Reserve Chairman Jerome Powell will hint at the possibility of the central bank further cutting interest rates later this year when the annual financial symposium is held in Jackson Hole, Wyoming, on Friday.