Business / Financial Markets | CURRENCY MARKET

Dollar breaches ¥112 line in Tokyo for first time in month and a half

JIJI

The dollar strengthened to around ¥112 in Tokyo Monday, underpinned by higher stock prices.

At 5 p.m., the dollar stood at ¥111.91-91, up from ¥111.86-86 at the same time on Friday. The euro was at $1.1316-1316, up from $1.1288-1288, and at ¥126.63-68, up from ¥126.27-27.

The dollar was boosted close to ¥112.10 in early trading by risk-on buying by investors who took heart from Friday’s powerful rebound on Wall Street and a post-weekend surge in the Nikkei stock average.

The greenback topped ¥112 for the first time in 1½ months here.

However, the U.S. currency’s rise to the threshold prompted selling to lock in gains, traders said.

In afternoon trading, active trading in the dollar-yen pair was held in check ahead of the start of the first-round Japan-U.S. trade negotiations in Washington later on Wednesday.

“Players were bracing for U.S. officials’ possible remarks about the inclusion of a currency provision in an envisaged deal with Japan,” a currency broker said.

An official at a bank-affiliated securities firm said investors began refraining from active transactions as a 10-day holiday in Japan approached on April 27.