July 30, 2010 – TOKYO, July 30 (Reuters) - The dollar hit an eight-month low against the yen on Friday, extending losses made earlier on the back of suspected month-end yen buying by Japanese exporters.
The dollar's drop came amid a broad rally in the yen, with traders citing talk of euro-denominated bond redemptions that may lead to fund repatriation into the yen, as well as talk of possible position liquidation by Japanese retail margin traders ahead of a new leverage cap that will take effect next week.
The dollar fell to as low as 86.25 yen on trading platform EBS.
The euro slid 0.9 percent against the yen to 112.69 yen.
