Business / Financial Markets | CURRENCY MARKET

Dollar strengthens above ¥109.50 in Tokyo on buybacks, uptick in U.S. rates


The dollar advanced above ¥109.50 in Tokyo trading Thursday, supported by a brisk rebound in Tokyo stocks.

At 5 p.m., the dollar stood at ¥109.52-52, up from ¥109.02-02 at the same time on Wednesday. The euro was at $1.2267-2267, down from $1.2385-2385, and at ¥134.37-37, down from ¥135.02-03.

After moving around ¥109.20-30 in early trading, the dollar briefly fell below ¥109.20 around 9 a.m. But the U.S. currency soon recovered thanks to buybacks and fluctuated around ¥109.20-40 later in the morning.

In the afternoon, the dollar jumped above ¥109.60 on the back of higher Tokyo stock prices and a rise in U.S. long-term interest rates in off-hours trading, traders said.

The greenback climbed further in late trading, briefly topping ¥109.70.

A foreign-exchange broker said that the dollar attracted position-adjustment buying as the benchmark 225-issue Nikkei average extended gains in the afternoon.

Still, market players cannot be optimistic yet about the course of U.S. long-term interest rates and equity prices in light of the week’s extreme volatility, a fund manager at an asset management firm said, stressing the need to keep a close watch on U.S. developments for the time being.