Business / Financial Markets | CURRENCY MARKET

Dollar hits four-month high above ¥110.50 in Tokyo on higher U.S. rates


The dollar advanced to a four-month high above ¥110.50 in Tokyo trading late Thursday, lifted by higher long-term U.S. interest rates.

At 5 p.m., the dollar stood at ¥110.53-53, up from ¥110.17-17 at the same time on Wednesday. The euro was at $1.1823-1824, down from $1.1847-1847, and at ¥130.69-71, up from ¥130.51-52.

In early trading, the dollar moved around ¥110.30, supported by an overnight rise in U.S. stock prices and movements in 10-year Treasury yields above 3 percent.

After approaching ¥110.40, the greenback fell back to levels around ¥110.10 late in morning trading due to profit-taking, traders said, adding that buybacks helped the U.S. currency regain the upward momentum in the afternoon.

In late trading, the dollar rose to levels around ¥110.60 thanks to a rise in long-term U.S. interest rates in off-hours trading, traders said.

But “the dollar lost some of its upward momentum” due to buybacks of the euro, an official of a foreign-exchange brokerage house said.

Market players are paying attention to the political situation in Italy and the outcome of two days of trade talks in Washington between the United States and China through Friday, market sources said.