Business / Financial Markets | CURRENCY MARKET

Dollar rises above ¥110 in Tokyo

JIJI

The dollar rose above ¥110 in Tokyo trading Wednesday, supported by a rise in Japanese stock prices.

At 5 p.m., the dollar stood at ¥110.21-22, up from ¥109.75-76 at the same time Tuesday. The euro was at $1.1575-1575, down from $1.1579-1580, and at ¥127.58-58, up from ¥127.09-09.

After moving around ¥110.00-10 in early trading, the dollar fell below ¥109.90, with market sentiment hurt by falls in Tokyo stock prices.

The greenback bounced back to around ¥110.20 in midmorning trading thanks to the benchmark 225-issue Nikkei stock average’s recovery, traders said.

After hovering around ¥110.10 in afternoon trading, the dollar rose slightly as stocks expanded gains, traders said.

Commodity trading advisers and other overseas fund managers moved for short covering of the dollar following a rebound in U.S. stock index futures and a rise in long-term U.S. interest rates, both in off-hours trading, an official at a foreign exchange margin trading service firm said.

Still, “the dollar’s topside was heavy around ¥110.20, the highest level in morning trading,” an official at a currency brokerage house said.

The U.S. currency attracted buybacks following the previous day’s drop attributed to a risk-averse mood stemming from concerns over a U.S.-China trade war, the official also said.

But an official at a currency margin trading firm said that the dollar “is unlikely to test its upside due to uncertainties” over the course of the U.S.-China trade row.