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Greenback briefly eclipses ¥102

JIJI

The dollar briefly topped ¥102 in late Tokyo trading Tuesday, aided by upbeat Tokyo stocks amid a persistent wait-and-see mood before releases later this week of a series of crucial U.S. economic data.

At 5 p.m., the dollar was at ¥101.90-90, up from ¥101.87-87 at the same time Monday. The euro was at $1.3432-3432, against $1.3431-3432, and at ¥136.87-88, up from ¥136.82-84.

“Many players were sitting on the fence,” before the U.S. events, an official at a foreign exchange broker said.

They awaited the U.S. Federal Reserve’s statement to be released after its two-day policy meeting through Wednesday, U.S. gross domestic product data for April-June due out Wednesday and Friday’s U.S. jobs report for July.

The dollar moved around ¥101.80 in early morning, after the U.S. Dow Jones industrial average’s rebound and higher Treasury yields helped underpin the greenback in slow New York trading overnight.

The market hardly reacted to Japanese economic indicators announced in the morning, such as the job opening ratio and jobless rate in June.

The U.S. unit advanced to around ¥101.90 toward noon in line with an upward march of the Nikkei average.

In the afternoon, the dollar gained further ground, supported by purchases from commercial demand-backed players for their month-end settlement purposes, according to a market source.

The dollar temporarily rose above ¥102 in late hours in line with the strength of major European stock markets.

But its topside was capped by profit-taking as a sense of achievement grew after the dollar topped the threshold, an official of a major Japanese bank said.

Selling pressure intensified as the dollar approached ¥102, with options-related dollar selling orders lined up at the levels, an official at a foreign exchange broker said.