NEW YORK: The U.S. dollar remained at the lower 124 yen level Thursday morning in Tokyo as traders continued to digest a series of devaluations by China of its currency.
At noon, the dollar fetched 124.41-42 yen compared with 124.16-26 yen in New York and 124.47-49 yen in Tokyo at 5 p.m. Wednesday.
The euro was quoted at $1.1134-1135 and 138.52-54 yen against $1.1153-1163 and 138.56-66 yen in New York and $1.1115-1116 and 138.35-39 yen in Tokyo late Wednesday afternoon.
The dollar moved without clear direction in the morning as the Chinesecentral bank devalued the yuan against the U.S. currency for the third day in a row.
After the announcement by the People’s Bank of China, “the dollar briefly dropped…amid a risk-off mood,” said Yuzo Sakai, manager of foreign exchange business promotion at Tokyo Forex & Ueda Harlow.
But the dollar-yen pair was also supported as risk aversion, which had been seen in recent days due to the Chinese moves, eased with players apparently taking heart from firmness in Tokyo stocks, dealers said.
Market participants are now awaiting U.S. retail sales data for July due out later in the day for clues to the timing of U.S. interest rate hikes.
“A strong retail sales reading could boost expectations that the Federal Reserve will raise interest rates in September, and drive dollar-buying” Sakai said.
