The dollar shed early gains to move at around ¥110.00 in Tokyo trading late Monday.
At 5 p.m., the dollar stood at ¥110.03, slightly up from ¥110.00 at the same time on Friday. The euro was at $1.1883, down from $1.1915, and at ¥130.74, down from ¥131.07.
The dollar traded at around ¥110.20 in early morning trading, after rising on hawkish comments by Jim Bullard, president of the Federal Reserve Bank of St. Louis, over the weekend.
Later in the morning, the greenback sank on the benchmark Nikkei stock average’s plunge and a fall of U.S. long-term interest rates in off-hours trading. The effects of the euro’s depreciation against the yen pushed down the U.S. currency briefly below ¥109.80 in the afternoon.
But the selling pressure eased later as market players took a wait-and-see attitude ahead of a speech by John Williams, president of the Federal Reserve Bank of New York, according to a currency broker.
An official at a Japanese bank said that “the dollar’s downside was limited despite strong demand for the yen amid a risk-off mood” due to plummeting stock prices.
The dollar was supported by a rise in U.S. medium-term interest rates following the Fed’s hawkish turn, traders said.
The currency broker noted that the dollar will likely rebound against the yen if risk factors, such as the falling stock prices, ease.
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