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Dollar firmer above ¥112.80 in Tokyo


The dollar climbed above ¥112.80 in Tokyo trading on Thursday, partly aided by buying from real demand-backed players.

At 5 p.m., the dollar stood at ¥112.86-87, up from ¥112.37-38 at the same time Wednesday. The euro was at $1.1157-1157, down from $1.1189-1190, and at ¥125.93-94, up from ¥125.73-74.

After moving around ¥112.30 in early trading, the dollar rose to top ¥112.80 in midmorning trading thanks to purchases by Japanese importers and institutional investors.

“Real demand-backed players moved up dollar purchases” ahead of the Easter holiday period abroad, a currency broker said.

Domestic players bought the greenback with the approach of the March 31 end of fiscal 2015, a different source noted.

Meanwhile, some players who had sold the dollar earlier moved to cover their short positions because its downside is solid, an official at a foreign-exchange margin trading service firm said.

The dollar remains firm against the yen thanks to recent comments by senior Federal Reserve officials suggesting a positive stance on an additional interest rate hike by the U.S. central bank following its first hike in more than nine years in December 2015, market sources said.

In late trading, the dollar briefly rose to around ¥113, but failed to keep up the momentum due in part to sales for position adjustments.