The dollar was weaker around ¥108.80 in Tokyo on Wednesday as trading was slow in general before key events in the United States.
At 5 p.m., the dollar stood at ¥108.79, down from ¥108.93 at the same time Tuesday. The euro was at $1.2133, down from $1.2141, and at ¥132.00, down from ¥132.27.
The dollar’s fall in late trading came in response to buying of the euro and the British pound on upbeat British economic growth data and a drop in U.S. long-term interest rates.
Market players were largely on the sidelines ahead of the release of U.S. consumer price data and a 10-year U.S. Treasury note auction later on Wednesday.
“The moves of interest rates and stocks following the release of the data and the auction will affect the dollar,” an official at a Japanese bank said.
“If the price data turn out to be favorable, a resulting rise in U.S. long-term interest rates will prompt dollar buying,” an official at a Japanese bank said.
Referring to Wednesday’s drops in Japanese and Taiwanese stock prices, a currency broker said that a worldwide stock sell-off “could dampen investor sentiment.”
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