Financial Markets

Dollar falls to around ¥106.50 in Tokyo trading

Jiji

The dollar fell to around ¥106.50 in Tokyo trading on Thursday.

At 5 p.m., the dollar stood at ¥106.59, down from ¥107.06 at the same time Tuesday. The euro was at $1.0883, up from $1.0839, and at ¥116.01, almost unchanged from ¥116.06. The Tokyo market was closed Wednesday for a national holiday.

After slipping through ¥106.40 in overseas trading Wednesday, reflecting weak U.S. economic data, the dollar rose close to ¥106.90 by midmorning on buying by Japanese importers. But the greenback met with selling by Japanese exporters later.

“Month-end real demand-backed activities were dominant,” a Japanese bank official said.

Active dollar purchases were held in check amid increasing concerns over deterioration in fiscal health, and interest rate falls in the United States caused by huge government spending and quantitative monetary easing aimed at overcoming the coronavirus crisis, an official at a foreign exchange margin trading service firm noted.

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