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Dollar briefly approaches ¥100 line

JIJI

The dollar extended gains and briefly rose to near ¥100 in Tokyo trading Tuesday, helped by its strength against the Australian dollar and rises in Tokyo stock prices.

At 5 p.m., the dollar stood at ¥99.69-70, up from ¥99.59-61 at the same time Monday. The euro was at $1.3056-3058, up from 1.$3046-3047, and at ¥130.13-23, up from ¥129.93-¥130.00.

In overseas trading overnight, the dollar rose to around ¥99.85 at one point after the U.S. Institute for Supply Management’s manufacturing activity index for June beat market forecasts.

But the dollar failed to gain further ground as an employment-related figure in the ISM index turned out to be weak, brokers said.

“Due to the weak reading, investors found it difficult to build fresh positions aggressively before the U.S. government’s jobs report for June, due out Friday,” an official at a foreign exchange dealer said.

After moving in a narrow range above ¥99.50 in early trading in Tokyo in the absence of fresh trading incentives, the dollar came under moderate selling.

The dollar later advanced gradually in line with its strength against the Australian dollar.

“After the Australian central bank kept its key interest rate unchanged at a monetary policy meeting (Tuesday), the Australian dollar weakened against the U.S. dollar and the greenback subsequently gained moderate ground against the yen,” an official of a major Japanese bank said.

The greenback was also supported by sharp rises in Tokyo stocks, brokers said.

After European investors joined the market in late hours, the dollar attracted renewed demand and rose to around ¥99.90 at one point.