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Dollar tops ¥102.80 in Tokyo on strong U.S. GDP data

JIJI

The dollar was firmer above ¥102.50 in Tokyo trading Thursday, following its overnight gain prompted by upbeat U.S. gross domestic product data.

At 5 p.m., the dollar stood at ¥102.85-86, up from ¥102.16-17 at the same time Wednesday. The euro was at $1.3395-3396, down from $1.3397-3401, and at ¥137.78-79, up from ¥136.88-91.

The greenback retained its solid tone above ¥102.80 in early transactions after rising to ¥103.15, its highest level since April 7, in New York on Wednesday in the wake of the stronger than expected GDP data for April-June. A rise in the 10-year U.S. Treasury yield also supported the dollar.

The U.S. unit slightly eased in Tokyo morning trading due to selling from Japanese exporters for month-end settlement purposes. Individual investors also moved to sell dollars to lock in profits from the currency’s brief rise above ¥103, an official of a foreign exchange margin trading service firm said.

Those who sold dollars apparently took a cue from weak readings in Automatic Data Processing Inc.’s U.S. private-sector jobs report for July and the U.S. Federal Reserve’s policy statement that was not as hawkish as expected, said a foreign exchange broker official.