Dollar weaker around ¥113.40 in late Tokyo

16 May


The dollar lost ground to move around ¥113.40 in Tokyo trading late Tuesday, pressured chiefly by position-adjustment selling.

At 5 p.m., the dollar stood at ¥103.45-45, down from ¥113.64-65 at the same time Monday. The euro was at $1.1028-1028, up from $1.0941-0945, and at ¥125.12-12, up from ¥124.34-41.

After falling to around ¥113.50-60 in early trading due to profit-taking, the dollar briefly topped ¥113.70, helped by a rise in Tokyo stock prices.

But the dollar gave up the gains after stocks lost steam.

The greenback was also dampened by a drop in U.S. long-term interest rates, market sources said.

“The dollar faced position-adjustment selling as the benchmark 225-issue Nikkei stock average failed to rise above the psychologically important 20,000 threshold on the Tokyo Stock Exchange,” an official of a currency brokerage firm said.

Still, the dollar resisted falling further at levels around ¥113.30.

“The dollar was supported by buy orders placed at levels below ¥113.50 by individual investors,” an official at a foreign exchange margin trading service firm said.

In late hours, the dollar came under renewed selling pressure as European players moved to buy the euro versus the U.S. currency.

But the U.S. currency’s downside was limited since there were no additional dollar-negative factors, one market source said.

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