/

Dollar rises above ¥120.50 in Tokyo

JIJI

The dollar rose moderately to top ¥120.50 in Tokyo trading on Monday, aided by real demand-backed buying and a stock market rally.

At 5 p.m., the dollar stood at ¥120.57-58, up from ¥120.29-37 at the same time Friday. The euro was at $1.0964-0965, almost unchanged from $1.0965-0970, and at ¥132.21-21, up from ¥131.96-97.

In early trading, the dollar was weaker around ¥120.10 yen, pressured by position-adjustment selling.

But the greenback took an upturn to break the ¥120.50-line in the midmorning, thanks to purchases from Japanese importers.

The dollar slightly weakened later, but rose back above the line on buying induced by the Nikkei stock average’s afternoon rally to snap its five-session losing streak.

In late hours, the U.S. currency drew renewed demand from European investors for position-adjustment purposes, market sources said. But the dollar failed to extend gains.

“There were no incentives to pushing up the dollar above ¥121,” an official at a foreign currency margin trading service firm said.

“Players were reluctant to build fresh positions before the year-end,” another market source pointed out.