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Greenback rises above ¥99.30 level

JIJI

The dollar attracted renewed demand and briefly rose to near ¥99.50 in Tokyo trading late Wednesday, in line with the euro’s surge against the Japanese currency.

At 5 p.m., the dollar stood at ¥99.34-36, up from ¥98.94-96 at the same time Tuesday. The euro was at ¥130.18-21, up from ¥128.80-82, and at $1.3104-3106, up from $1.3017-3018.

In overnight trading overseas, the dollar traded around ¥99, with its upside limited by selling aimed at locking in profits.

In early Tokyo trading, the dollar briefly rose to around ¥99.30 since many investors believe that the yen will fall further after the Bank of Japan launched a new bold monetary easing regime last week.

But the dollar failed to extend gains in the absence of fresh trading pegs, moving in a tight range around ¥99 in the afternoon.

As the pace of the yen’s weakening was fast following the BOJ decision, investors moved to adjust positions.

Although the yen remained on a weak tone, “a wait-and-see mood spread in the market after the yen fell sharply in a short period of time,” a foreign exchange strategist said.

“Many market players apparently want to sell the dollar before it reaches ¥100,” an official of a Japanese bank said.

After European players joined trading in late hours, the dollar gradually regained strength and topped the ¥99.30 level, in step with the euro’s rise against the yen that partly reflected a solid start for European stock markets, according to market sources.

Looking ahead, an official at another Japanese bank said “the dollar needs additional positive factors” to rise further.