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Dollar firms to around ¥114.50 in Tokyo

JIJI

The dollar traded around ¥114.50 in Tokyo on Tuesday, as stocks advanced and eased a risk-off sentiment in the market.

At 5 p.m., the dollar was at ¥114.49-50, up from ¥113.74-74 at the same time Monday. The euro was at $1.1153-1153, down from $1.1210-1211, and at ¥127.70-71, up from ¥127.51-58.

After attracting buybacks in overnight trading abroad, the greenback traded around ¥114.60 in early hours. But it soon eased to around ¥114.30 in line with the Nikkei average’s weak start.

The dollar regained ground toward noon, helped by demand from Japanese importers in midmorning transactions and upbeat Tokyo and Chinese stocks.

After climbing close to ¥114.90 in the afternoon, the dollar retreated to around ¥114.50 as the Nikkei average shed part of its earlier gains.

Following its rapid rise abroad overnight, the dollar met with a wave of selling on a rally as it approached ¥115, a market source noted.

“Market participants are waiting to see developments in the U.S. market” following its closure on Monday for a national holiday, according to a currency broker.

The undertone of the dollar-yen rate was believed to be solid, reflecting higher stock prices. But an official at a major Japanese bank said, “Concerns have not been wiped off and fresh incentives are needed to drive the dollar above the 115-yen line.”