Dollar weaker around ¥112 in Tokyo

The dollar was weaker around ¥112 in Tokyo trading Friday, reflecting sluggish stock prices.

At 5 p.m., the dollar stood at ¥112.06-07, down from ¥112.50-50 at the same time on Thursday. The euro was at $1.1411-1412, down from $1.1425-1425, and at ¥127.88-89, down from ¥128.55-56.

The dollar moved around ¥112 in early trading, hit by selling after overnight plunges in European and U.S. equities. The U.S. currency retreated to around ¥111.70 in late morning trading in line with the benchmark Nikkei 225 average’s brief slump below 20,000.

The dollar attracted some buybacks in the afternoon thanks to a rise in U.S. long-term interest rates in off-hours trading, but its topside was limited by the lack of active trading on the final market day of the month.

A foreign exchange broker said that buying on dips was seen when the dollar fell back below ¥112.

An official of a foreign exchange margin trading service firm said that market participants retreated to the sidelines to see moves by overseas players and to wait for next market moving-factors to come out.

With the dollar-yen rate’s movements closely linked to U.S. equities, the key is whether the U.S. stock market will stop falling later on Friday, an official of another foreign exchange margin trading service firm said.

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