Dollar falls below ¥102.50 on stock slump

The dollar fell below ¥102.50 in Tokyo trading on Thursday, dragged down by losses on stock markets worldwide and a fall in U.S. long-term interest rates.

At 5 p.m., the dollar stood at ¥102.44-45, down from ¥103.12-12 at the same time Wednesday. The euro was at $1.1224-1225, against $1.1222-1222, and at ¥114.99-115.00, down from ¥115.72-73.

After slipping below ¥102.50 in New York trading overnight, the greenback briefly climbed as high as ¥102.60 in Tokyo early Thursday morning on the back of purchases by Japanese importers, traders said.

However, it met with renewed selling and sank below ¥102 later in the morning as stocks extended losses.

The dollar then showed some resilience, with traders buying on dips.

“Traders appear to be in no mood to sell the dollar versus the yen further” ahead of a policy-setting meeting of the Bank of Japan next week, a Japanese bank official said.

Players were also awaiting the release later on Thursday of U.S. retail sales data for August, traders said.

On Wednesday, the dollar surged above ¥103 on reports that the BOJ is considering expanding its negative interest rate policy.

But after the currency market priced in the possible BOJ move, the U.S. unit came under position-adjustment selling, analysts said.

Add a Comment

Your email address will not be published. Required fields are marked *