Yen falls with Asian stocks in focus; China acts to curb futures speculation

On Wednesday the Japanese currency was weaker against the greenback and euro in another round of jittery trade in Asia. Investors keep an eye on the region's equities after the global stock-market selloff.

Among the latest news, Reuters has just reported that the China Financial Futures Exchange has increased margin requirements for stock-index futures due to the “market situation,” the exchange said in a statement dated Wednesday. The exchange’s moves were taken in an effort to limit speculation after stock-index futures tumbled by their daily limit of 10% for two sessions in a row. Beyond increasing margin requirements, the exchange also revealed new transaction fees and restrictions on daily open positions.

A day earlier, the People’s Bank of China trimmed interest rates in a response to mounting concerns over the country's economic growth. After opening weaker again, the Shanghai Composite Index was last trading 1.28% in the red.

In Tokyo, the Nikkei Stock Average was last up 3.20%, on the track to close higher after a six-day losing streak. The benchmark has lost about 12% since last week.

The U.S. dollar was at ¥119.54, compared with ¥118.86 late Tuesday in New York.

The euro rose to ¥137.30 from ¥136.89 late Tuesday.

Analysts interviewed by MarketWatch suggest that some investors are looking for the chance to buy the dollar on a dip, when others who had expected the dollar’s upside bias are hastily selling the U.S. currency.

The dollar will “continue to find its position to stay in a range between ¥118 and ¥120,” said Minori Uchida, head of Tokyo global markets research at Bank of Tokyo-Mitsubishi UFJ.

He noted that market players were gradually shifting their focus on the timing of a possible U.S. Federal Reserve increase of short-term rates as early as this year.

Investors will be watching the Fed’s annual conference in Jackson Hole, Wyo., later this week. Although Chair Janet Yellen won’t be attending the meeting, Fed Vice Chairman Stanley Fischer is awaited to deliver remarks on inflation Saturday.

The dollar was higher against the euro, which was last at $1.1500 midday from $1.1517.