Business / Financial Markets | CURRENCY MARKET

Dollar stuck in tight range around ¥109.60 in Tokyo as incentives elude

JIJI

The dollar moved in a narrow range around ¥109.60 in Tokyo on Monday amid a lack of major fresh trading incentives.

At 5 p.m., the dollar stood at ¥109.58-59, up from ¥109.19-20 at the same time Friday. The euro was at $1.1696-1697, up from $1.1683-1684, and at ¥128.17-17, up from ¥127.58-58.

The dollar rose above ¥109.70 in early trading, attracting purchases thanks to a rise in Japanese stocks and the upward trend in U.S. interest rates.

“The dollar drew buying from real demand-backed players at the beginning of a week,” an official at a major securities house said.

The dollar attracted buybacks amid Friday’s upbeat U.S. jobs and as political uncertainties receded in Italy and other southern European countries, an official at another securities house said.

But the dollar failed to extend gains, due chiefly to profit-taking.

A think tank official said currency players found it difficult to tilt their positions either way ahead of the U.S.-North Korean summit and the U.S. Federal Reserve’s policy meeting next week.