Business / Financial Markets | CURRENCY MARKET

Strong U.S. economy pushes dollar above ¥112.70 in Tokyo

JIJI

The dollar was firmer above ¥112.70 in Tokyo trading late Friday due mainly to the strength of the U.S. economy.

At 5 p.m., the dollar stood at ¥112.78-78, up from ¥112.32-32 at the same time Thursday. The euro was at $1.1631-$1.1631, down from $1.1685-1686, and at ¥131.18-19, down from ¥131.26-27.

The dollar was supported by real demand-backed purchases by Japanese importers as well as a rise in the benchmark 225-issue Nikkei stock average, traders said.

“Dollar purchases continued after the greenback rose above a technical threshold of ¥111.50,” a trust bank official said.

The dollar fell back moderately on position-adjustment selling before spurting in late trading.

Selling of euros against the dollar following the release of downbeat German economic data had an impact on the dollar-yen pair in late trading, an official of a foreign-exchange margin trading service said.

“It’s not strange if the dollar tops its year-to-date high of ¥113.38 and rises above ¥114,” given the U.S. economy’s strength, an official at a foreign-affiliated securities house said.