Business / Financial Markets | CURRENCY MARKET

Dollar retakes ¥110 in Tokyo

JIJI

The dollar retook ¥110 in Tokyo trading Wednesday thanks to a continued rise in long-term U.S. interest rates.

At 5 p.m., the dollar stood at ¥110.17-17, up from ¥109.88-89 at the same time on Tuesday. The euro was at $1.1847-1847, down from $1.1922-1923, and at ¥130.51-52, down from ¥131.01-02.

In early trading, the dollar moved around ¥110.30, inheriting its overnight strength from overseas markets, where the greenback attracted purchases as brisk U.S. retail sales data for April, released on Tuesday, drove up the benchmark 10-year U.S. Treasury bond yield to the highest level in nearly seven years, traders said.

After rising near ¥110.40 in midmorning trading, the U.S. currency moved around ¥110.20-30 in the afternoon as the buying spree ran its course, traders said.

“While profit-taking and selling by real demand-backed players hit the dollar, its downside is solid on the back of the higher U.S. interest rates,” a foreign exchange brokerage official said.

An official of a major Japanese bank said the dollar would likely test its upside if stock prices in and outside the country rise in spite of the increasing interest rate in the United States.