The U.S. dollar was lower against the yen on Tuesday, with investors seeking to take profits on overnight gains in the greenback, as Tokyo stocks failed to pick up on the positive mood in overseas stock markets.
In Japan, the Nikkei 225 index moved lower 222.19 points, or 1.3%, to 17,335.85, prompting buying of the safe-haven Japanese currency and selling of the dollar to take profits.
The greenback was at ¥117.43 at the latest, compared with ¥117.48 late Monday in New York.
In Hong Kong, the Hang Seng index regained 70.04 points, or 0.3%, to 24,554.78, after three straight losing sessions.
The downward movement gained momentum as the Reserve Bank of Australia surprised markets by cutting rates, which triggered sharp declines in the Australian currency against the yen
The Australian dollar hit as low as ¥89.37, before changing hands at ¥90.22, compared with ¥91.70 late Monday. Against the U.S. dollar, the Aussie dropped to $0.7670, down from $0.7803 on Monday.
The RBA lowered its benchmark interest rate to a record low of 2.25%, joining a procession of central banks that have eased policy settings since the start of the year in response to the deflationary impact of tumbling oil prices.
The RBA’s decision may cloud expectations that the Federal Reserve will go ahead with interest rates increase as early as later this year.
In other markets;
The Shanghai CS300 index reversed and gained 83.49 points, or 2.5%, to 3,437.45
The Kospi in Korea dropped 0.72 points to 1,951.96
In Taiwan, the Taiex index gathered 61.74 points, or 0.7%, to 9,448.73
In Singapore, the Straits Times Index forfeited 15.33 points, or 0.5%, to 3,408.02
New Zealand’s NZX 50 index improved 25.26 points, or 0.4%, to 5,781.95
The S&P/ASX index progressed 82.03 points, or 1.5%, to 5,707.37
