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Dollar tops ¥100.70 on Fed news

JIJI

The dollar climbed above ¥100.70 in Tokyo trading Thursday, buoyed by a rise in Japanese stocks.

At 5 p.m., the dollar was at ¥100.72-73, up from ¥99.95-100.06 at the same time Wednesday. The euro was at $1.3407-3409, down from $1.3533-3535, and at ¥135.04-07, down from ¥135.30-34.

The greenback moved around ¥100.20 in early morning trading after attracting some purchases in late New York trading overnight on the minutes of the U.S. Federal Reserve’s policy meeting Oct. 29 and 30. The minutes showed some members pointed to a possibility of starting to slow asset purchases at one of its next few meetings.

The minutes of the Federal Open Market Committee meeting fueled expectations that “the Fed may begin scaling back the stimulus as early as this year depending on the outcome of U.S. employment data for November,” said an official of a major Japanese bank.

The minutes came after stronger than expected U.S. retail sales data for October, announced Wednesday, which gave rise to a view that there would be a limited impact from the government shutdown last month, according to a market source.

The U.S. currency topped ¥100.50 in Tokyo midmorning trading, helped by a powerful gain in the Nikkei average.

The Bank of Japan’s widely expected decision to keep its monetary policy intact had little impact on the market.

As the Nikkei remains bullish, dollar buying gathered steam again in the afternoon, sending the unit to levels around ¥100.80.

“Players snapped up the dollar after speculation about the Fed’s early tapering of asset purchases did not lead to stock selling,” said an official of a Japanese bank.