Dollar ekes out small rise to ¥98.32


The dollar was capped at levels around ¥98.30 in Tokyo trading Thursday, pressured by profit-taking and a fall in stock prices.

At 5 p.m., the dollar stood at ¥98.32-35, up from ¥98.26-28 at the same time Wednesday. The euro was at $1.3699-3700, down from $1.3741-3742, and at ¥134.70-73, down from ¥135.02-03.

In overseas trading overnight, the dollar briefly hit a two-week high of ¥98.69 after a rise in U.S. long-term interest rates. The rise was triggered by a statement issued after the U.S. Federal Reserve’s Federal Open Market Committee meeting.

“The FOMC statement was not as dovish as some market participants had expected,” an official at a Japanese bank said.

The Fed maintained its quantitative easing.

Carrying over its strength from overseas, the dollar was solid around ¥98.40-50 in early Tokyo trading, partly aided by buying by Japanese importers. But the greenback was soon hit by selling aimed at locking in profits.

The dollar also came under pressure through selling by Japanese exporters for month-end settlement purposes, but it resisted falling further thanks to buybacks, brokers said.

After Tokyo stocks extended losses toward the close, the dollar fell moderately against the yen in line with the Japanese currency’s rise in cross-trading, an official at a foreign exchange broker said.

Meanwhile, dollar-yen trading was affected little by the Bank of Japan’s decision at its Policy Board meeting to continue monetary easing and the BOJ’s semiannual economic and price outlook report.

“With the end of the monetary policy meetings of the U.S. and Japanese central banks, the yen attracted buybacks after being hit by selling in recent sessions,” an official at another Japanese bank said.