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Dollar top-heavy around ¥101.90

JIJI

The dollar was firmer above ¥101.90 in Tokyo trading Monday following a rise in Tokyo stock prices, but it failed to extend its gains due to a lack of additional positive factors.

At 5 p.m., the dollar stood at ¥101.92-92, up from ¥101.71-72 at the same time Friday. The euro was at $1.3640-3642, almost unchanged from $1.3644-3646, and at ¥139.02-09, up from ¥138.78-80.

In early trading, the dollar was solid around ¥101.90, carrying over its upward momentum from overseas trading Friday, when the greenback attracted demand thanks to a surge in U.S. stock prices.

The dollar briefly rose to around ¥102.05 after Tokyo stocks got off to a firm start.

But the dollar was unable to maintain its upward momentum and fell back below ¥102 due to disappointment over Tokyo stocks’ failure to gain further ground.

“As investors had factored in a moderate rise in Tokyo stock prices and U.S. long-term interest rates remained at low levels, the dollar failed to chase higher ground,” an official at a foreign exchange broker said.

“With the dollar likely to face selling from such real demand-backed players as Japanese exporters at levels above ¥102, individual investors will find it difficult to buy the greenback further without additional positive factors,” an official at a foreign exchange broker said.

The dollar maintained its resilience at levels around ¥101.90 as Tokyo stocks drew renewed purchases toward the close, market sources said.

Still, with its upside was limited, the dollar became static, a currency broker said.

Market sources said that a wait-and-see mood grew strong later as the British and U.S. financial markets are closed Monday for national holidays.

Meanwhile, a major Japanese bank official said that risk aversion moves related to the crisis in Ukraine have receded following Sunday’s presidential election, in which pro-European billionaire Petro Poroshenko declared victory after exit polls showed he had secured a majority of the votes.