Business / Financial Markets | CURRENCY MARKET

Dollar tops ¥108.80 in Tokyo

JIJI

The dollar jumped above ¥108.80 for the first time in 2½ months in Tokyo trading Tuesday, boosted by higher long-term U.S. interest rates.

At 5 p.m., the dollar stood at ¥108.88-88, up from ¥107.90-90 at the same time Monday. The euro was at $1.2195-2196, down from $1.2264-2264, and at ¥132.79-80, up from ¥132.34-34.

The dollar was solid above ¥108.70 in early trading, carrying over its strength from overnight trading overseas, where the greenback attracted purchases on a rise in long-term U.S. interest rates, traders said.

The dollar topped ¥108.80 in midmorning trading, in line with the Nikkei stock average’s strong rally. After fluctuating narrowly around ¥108.70-85, the U.S. currency rose close to ¥109 in late trading.

The dollar was actively bought on the interest rate rise while brisk stock markets in Japan and other parts of Asia prompted selling of the yen, a Japanese brokerage house official said.

But the dollar met with real demand-based selling as it neared ¥109, traders said.