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Dollar rises above ¥113.50 on strong stocks

JIJI

The dollar rose above ¥113.50 in Tokyo trading on Thursday, aided by gains on the stock market.

At 5 p.m., the dollar stood at ¥113.57-59, up from ¥112.50-50 at the same time Wednesday. The euro was at $1.0967-0968, down from $1.0983-0984, and at ¥124.56-59, up from ¥123.58-58.

In early trading, the dollar was solid around ¥113.30 after attracting demand in overnight trading overseas on the back of a rebound in crude oil prices and gains in European and U.S. equities.

The greenback later climbed to near ¥113.70, inspired by a rise in Tokyo stock prices as well as a stronger-than-expected 2.3 percent year-on-year increase in the Chinese consumer price index for February.

“The CPI data somewhat eased concerns over the Chinese economy,” a currency broker said.

Still, one market source said that some market players seem to have overreacted to the headline CPI figure, which was chiefly lifted by higher vegetable and pork prices. Excluding food prices, the Chinese CPI rose 1 percent.

As Tokyo stocks extended gains in the afternoon, the dollar drew renewed purchases and rose to near ¥113.80.

After European players joined trading in late hours, however, it fell to around ¥113.50 amid position-adjustment selling.

“The dollar was hit by profit-taking at levels above ¥113.50,” an official at a foreign exchange margin trading service firm said.