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Dollar tops ¥113.50 in Tokyo on revised U.S. GDP

JIJI

The dollar rose above ¥113.50 in Tokyo trading on Monday, backed by an upward revision in the U.S. growth rate for October-December.

At 5 p.m., the dollar stood at ¥113.53-54, up from ¥113.06-07 at the same time Friday. The euro was at $1.1164-1165, little changed from $1.1162-1163, and at ¥126.76-77, up from ¥126.20-21.

The revised U.S. gross domestic product data, released by the Commerce Department on Friday, stoked expectations of another rate hike by the Federal Reserve, market sources said.

The department said the U.S. economy grew at an annualized 1.4 percent in the fourth quarter, higher than its advance growth estimate of 1.0 percent.

Besides the U.S. rate hike prospect, the greenback was underpinned by “risk-on” buying by investors anticipating Prime Minister Shinzo Abe’s decision to forgo the planned consumption tax increase and implement stimulus measures, market sources said.

Also aided by Japanese importers’ purchases for settlement purposes ahead of Thursday, the final day of fiscal 2015, and by Tokyo stocks’ firmness, the dollar rose close to 113.70 around noon.

But the U.S. currency was stuck in a narrow range around ¥113.55 later in the absence of trading incentives other than stock prices while many overseas players were off for the Easter holiday, traders said.