The dollar was modestly firmer above ¥112 in late Tokyo trading on Monday, with Japanese Prime Minister Shinzo Abe set to call a general election at an evening news conference.
At 5 p.m., the dollar stood at ¥112.22-23, up from ¥112.00-01 at the same time on Friday. The euro was at $1.1909-1909, down from $1.1992-1992, and at ¥133.66-68, down from ¥134.32-33.
The greenback climbed to around ¥112.40 early in the morning, because hopes for economic stimulus measures grew ahead of the anticipated election and investors were relieved to see North Korea take no further provocative action over the weekend, market sources said.
The U.S. unit advanced to around ¥112.50 later in the morning, backed by Japanese importers’ purchases and buying reflecting firmer Tokyo stocks, the sources said.
The dollar then grew top-heavy amid lingering geopolitical concerns over North Korea.
It moved modestly above ¥112 later as traders were awaiting Abe’s news conference as well as a speech by Federal Reserve Bank of New York President William Dudley later in the day.
The dollar met with “heavy profit-taking pressure” around ¥112.50, an official at a major Japanese bank said. Meanwhile, it was “supported around ¥112” by firm stock prices, said an official at a foreign exchange brokerage house.
The euro was on a soft note versus the dollar, with German Chancellor Angela Merkel’s ruling conservative bloc expected to face difficult coalition talks after winning Sunday’s general election for the lower house of the country’s parliament.
In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.