Business / Financial Markets | CURRENCY MARKET

Dollar firmer above ¥111.50 in late Tokyo

JIJI

The dollar was stronger above ¥111.50 in Tokyo trading late Tuesday, supported by higher Japanese stock prices and a wave of euro purchases against the yen.

At 5 p.m., the dollar stood at ¥111.53-54, up from ¥110.99-99 at the same time on Monday. The euro was at $1.1630-1630, up from $1.1566-1566, and at ¥129.71-73, up from ¥128.37-37.

After trading narrowly around ¥111.10 in early trading, the dollar moved on a firm note in line with the Nikkei 225’s solid performance.

The greenback rose above ¥111.40 in midmorning trading thanks also to purchases from domestic importers and speculation of dollar demand triggered by an announcement by major semiconductor manufacturer Renesas Electronics Corp. that it will acquire a U.S. rival for $6.7 billion, traders said.

After hovering around that level, the dollar firmed versus the yen in late hours after the euro attracted buying against the Japanese currency from European players, traders said.

Euro purchases against the yen amid growing optimism about Britain’s exit from the European Union, or Brexit, in foreign trading overnight continued into Tokyo trading and “supported the dollar’s advance versus the yen,” an official of a bank-linked securities firm said.

“Many sell orders are lining up at levels around ¥111.50,” an official of a foreign exchange margin trading service company said, adding that the dollar “may be sold back in overseas trading” on the back of persistent concerns over U.S. trade policy.