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Profit-taking caps dollar at around ¥113

JIJI

The dollar was mostly stuck around ¥113 and refused to chase higher ground in Tokyo trading Monday, pressured by selling to lock in profits.

At 5 p.m., the dollar stood at ¥112.87-88, down from ¥112.94-95 the same time Friday. The euro was at $1.1087-1087, down from $1.1117-1118, and at ¥125.14-15, down from ¥125.57-58.

The greenback was weak in early trading, around ¥112.50-60, hit by selling triggered by declining oil and European and U.S. stock prices late last week.

It briefly topped ¥113 after Tokyo stocks turned higher after a sluggish start. It was also aided by purchases by Japanese importers but failed to extend gains as stocks grew top-heavy.

“The dollar faced profit-taking once it rose above ¥113,” an official at a foreign-exchange brokerage firm said.

“Currency players refrained from stepping up dollar purchases due to lingering worries over the global economy,” an official of another foreign-exchange broker said.

Later, the dollar was trapped in a narrow range around ¥112.90 absent fresh trading pegs.

“The dollar’s upside against the yen is expected to be limited unless U.S. economic data show clear signs of improvement,” an economist at a foreign brokerage house said.

The currency market will lack major trading incentives until a two-day meeting brings together the Group of 20 finance ministers and central bank chiefs in Shanghai on Friday and Saturday, a market source said.