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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