The dollar eased to around ¥105.80 in Tokyo trading Thursday, in response to falls in U.S. long-term interest rates and Tokyo stocks.
At 5 p.m., the dollar stood at ¥105.81, down from ¥106.02 at the same time Wednesday. The euro was at $1.2047, down from $1.2073, and at ¥127.48, down from ¥128.01.
The dollar sank below ¥105.70 by midmorning, with buying sentiment dampened by the U.S. interest rates’ decline in off-hours trading and the 225-issue Nikkei average’s weak performance.
After showing some resilience, the greenback struggled for direction amid a dearth of market-moving news in the afternoon.
“The dollar met with selling whenever it approached the ¥106 line,” a Japanese securities firm official said.
“But its downside was solid,” a trust bank official said.
The official offered the view that U.S. long-term interest rates dropped because the minutes of the Federal Reserve’s Federal Open Market Committee meeting on Jan. 26-27, released early in the morning Japan time, failed to mention specific issues the Fed would discuss toward its review on the ongoing easing policy by the end of the year.
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