Business / Financial Markets | CURRENCY MARKET

Dollar falls to around ¥107.20 in Tokyo trading

JIJI

The dollar slipped to around ¥107.20 in Tokyo on Thursday amid lackluster trading for the majority of the day.

At 5 p.m., the dollar stood at ¥107.22-23, down from ¥107.67-68 at the same time on Wednesday. The euro was at $1.0944-0945, up from $1.0918-0922, and at ¥117.35-36, down from ¥117.58-58.

The dollar fell to around ¥107.10 in overseas trading, dampened by dismal U.S. employment data for September released by Automatic Data Processing Inc., and fluctuated within a narrow range in the early morning in Tokyo trading.

After briefly slipping below ¥107 in midmorning trading, pushed down by selling by speculators, the dollar then recovered to around ¥107.10, apparently thanks to real demand-backed buying.

The greenback moved narrowly until midafternoon trading, before rising slightly to exceed ¥107.20 in the late afternoon, helped by buybacks from European investors.

An official of a major Japanese bank noted that the dollar-yen rate firmed after the start of European trading hours.

The climb was due to the effects of dollar buying versus the Swiss franc, the official added.

Meanwhile, market players were focused on the U.S. Institute for Supply Management’s nonmanufacturing index for September, which will be announced later on Thursday, and the U.S. government’s employment statistics for September, to be released on Friday.

Pointing to a substantial worsening of the institute’s manufacturing index for September, announced on Tuesday, an official at a think tank said that market players “want to confirm whether the deterioration in the manufacturing sector affected entire (U.S.) domestic demand.”

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