Business / Financial Markets

Dollar drops below ¥107 after correction in Tokyo stocks

Jiji

The dollar dropped below ¥107 for the first time in about two weeks in Tokyo trading Friday, weighed down by a stock market correction.

At 5 p.m., the dollar stood at ¥106.83-84, down from ¥107.24-28 at the same time Thursday. The euro was at $1.1279-1279, down from $1.1336-1336, and at ¥120.50-51, down from ¥121.57-58.

After falling to around ¥107 on Japanese exporters’ selling by mid-morning, the dollar showed some resilience. But in the afternoon, it accelerated its downswing as the Nikkei stock average widened its losses.

The greenback was also hit by the fallout from a Chinese stock plunge caused by a government-affiliated investment fund’s stock sale announcement, a trust bank official said.

“The dollar-yen pair was swayed by a correction in stock prices that had risen abnormally fast,” said an official at a foreign-affiliated securities firm.

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