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Greenback firmer around ¥102.30

JIJI

The dollar was firmer around ¥102.30 in Tokyo on Tuesday, supported by higher stock prices and purchases by Japanese importers.

At 5 p.m., the U.S. currency was quoted at ¥102.27-28, up from ¥102.09-10 at the same time on Monday. The euro stood at $1.3367-3367, down from $1.3395-3396, and at ¥136.71-72, down from ¥136.76-77.

The greenback rose to around ¥102.35 in midmorning after Tokyo stocks gained ground following firm U.S. equity prices overnight, traders said.

“A sense of relief spread in the market” now that the sudden increase in the risk-off mood following U.S. airstrikes in Iraq has turned out a temporary phenomenon, a major Japanese bank official said.

On real demand-backed transactions, “importers rushed to snap up dollars against yen ahead of the Bon holiday period” around mid-August, said a foreign exchange market broker.

After the rise, the U.S. currency stayed around ¥102.30 for most of the day.

But the dollar lacked vigor to add more gains against the yen because many players are off for holidays, a different market source said.