The dollar went up to a four-month high near ¥114.50 in Tokyo trading Tuesday, lifted by higher U.S. long-term interest rates and a stock price rise.
At 5 p.m., the dollar stood at ¥114.31-31, up from ¥114.17-18 at the same time Monday. The euro was at $1.1390-1390, down from $1.1416-1417, and at ¥130.20-21, down from ¥130.34-35.
After moving around ¥114.10 in early trading, the dollar topped ¥114.20 by midmorning on buying from Japanese importers and the Nikkei 225’s continued advance.
Although the greenback lost steam later in the morning as a wave of buying subsided, it rallied in the afternoon to pass the ¥114.40 line to a level unseen since March 15. This was thanks to renewed purchases on the back of a rise in the U.S. interest rates in off-hours trading and the Nikkei’s further ascent, traders said.
But the dollar grew top-heavy in late afternoon trading as investors retreated to the sidelines before U.S. Federal Reserve Chairwoman Janet Yellen’s congressional testimony, scheduled for Wednesday and Thursday.
A Japanese bank official said the dollar is unlikely to exceed ¥115 amid a dearth of powerful buying incentives.