/ |

Dollar firmer around ¥113 supported by U.S. long-term interest rates

JIJI

The dollar rose to around ¥113 in Tokyo trading on Monday, supported by higher U.S. long-term interest rates.

At 5 p.m., the dollar stood at ¥112.98-112.98, up from ¥112.45-45 at the same time Friday. The euro was at $1.1740-1742, down from $1.1793-1794, and at ¥132.65-66, up from ¥132.62-62.

The dollar attracted purchases in early trading, following rises in U.S. stock prices and long-term interest rates on Friday.

Also aided by buying from Japanese importers and institutional investors, the U.S. currency was climbing to near ¥112.90 in the morning.

“The dollar was lifted by a rise in U.S. long-term interest rates in off-hours trading,” an official of a currency brokerage firm said. “Also, it apparently drew buying from real demand-backed players at the beginning of the month.”

An official at a Japanese bank said the higher U.S. interest rates reflected “expectations for an additional interest rate increase by the U.S. Federal Reserve within this year and tax system reforms by the U.S. government.”

In late hours, the greenback briefly topped ¥113, in line with its strength against the euro amid concerns over geopolitical risks from an independence vote in Spain’s Catalonia, market sources said.