Business / Financial Markets | CURRENCY MARKET

Dollar climbs above ¥111.80 in Tokyo after Turkish interest rate hike

JIJI

The dollar was stronger above ¥111.80 in Tokyo trading late Friday, helped by a steeper than expected interest rate hike by the Turkish central bank.

At 5 p.m., the dollar stood at ¥111.82-82, up from ¥111.47-48 at the same time on Thursday. The euro was at $1.1718-1719, up from $1.1614-1617, and at ¥131.05-06, up from ¥129.49-50.

The dollar retook ¥112 for the first time in about 1½ months in early trading, carrying over its overnight strength gained overseas from the Turkish interest rate hike.

The U.S. currency fluctuated around ¥112 later, supported by a surge in the benchmark 225-issue Nikkei stock average and purchases by domestic importers.

But the greenback fell below ¥111.90 in midmorning trading after Prime Minister Shinzo Abe referred to the Bank of Japan making an exit from its ultraeasy monetary policy.

After rising to around ¥112 in afternoon trading, the dollar fell back below ¥111.90.

The dollar’s strength against the yen came as investors’ risk-taking appetite grew after the Turkish rate hike and European Central Bank President Mario Draghi’s hawkish remarks about the European economy, an official from a foreign-exchange margin trading service said.

“Selling on a rally emerges” when the dollar approaches ¥112.15, the recent high marked on Aug. 1, the official also said.

Some currency market players were taking a wait-and-see stance ahead of the release of U.S. retail sales data for August later Friday, market sources said.