Dollar Weaker Against JPY Trading at 106.50

The dollar was weaker around ¥106.50 in late Tokyo trading Tuesday due to falls in Japanese stock prices and U.S. long-term interest rates.

At 5 p.m., the dollar was at ¥106.56-57, down from ¥107.06-07 at the same time Monday. The euro was at $1.2826-2827, up from $1.2768-2769, and at ¥136.69-70, almost unchanged from ¥136.70-71.

After moving around ¥106.90 in early morning trading, the dollar came under selling pressure as Tokyo stocks lost ground sharply.

As stocks extended losses in the afternoon, the dollar briefly slipped below ¥106.30.

“The Nikkei stock average’s drop of over 100 points came as a surprise” as the fall followed an overnight rise in U.S. stock prices and a favorable earnings report by U.S. technology giant Apple Inc., an official at a foreign exchange broker said.

The dollar was also pressured by a decline in U.S. long-term interest rates in off-hours trading, an official at another foreign exchange broker said.

Still, the dollar resisted falling further, attracting purchases at lows in the late hours, market sources said.

via Japan News

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza