Greenback rises to around ¥100


The dollar moved in a narrow range around ¥100 in Tokyo trading Wednesday amid a wait-and-see mood stemming from a lack of fresh trading incentives.

At 5 p.m., the dollar stood at ¥99.95-100.06, up from ¥99.¥82-82 at the same time Tuesday. The euro was at $1.3533-3535, up from $1.3518-3520, and at ¥135.30-34, up from ¥134.92-95.

In early trading, the dollar attracted a moderate wave of buying after the Finance Ministry reported that the customs-cleared trade deficit in October grew to ¥1.09 trillion, the third-biggest for a single month and the largest for October.

But the dollar came under selling pressure and fell below ¥100 later in the morning after Tokyo stocks gave up early gains and slipped into negative territory.

In the afternoon, a wait-and-see sentiment became strong before a government-commissioned panel of experts released their final report on a review of asset management policy of the Government Pension Investment Fund.

Dollar-yen rates have recently moved in tandem with stock price fluctuations. But due in part to concern over overheating in stock markets after the Dow Jones industrial average rose above 16,000 for the first time ever earlier this week, “currency players are now cautious about stepping up dollar-buying,” an official at a foreign securities house said.

Still, “the dollar attracted buying on dips at levels below ¥100,” an official at a foreign exchange broker said.

In view of a rise in U.S. long-term interest rates overnight, the downtrend of U.S. interest rates triggered by dovish remarks by Federal Reserve Chairwoman nominee Janet Yellen at a congressional confirmation hearing last week is apparently coming to a halt, market sources said.