Business / Financial Markets | CURRENCY MARKET

Dollar recovers ¥114 in Tokyo first time in 11 months

JIJI

The dollar traded firmly above ¥114 in Tokyo trading late Monday, after recovering the threshold for the first time since last November.

At 5 p.m., the dollar stood at ¥114.03-03, up from ¥113.42-43 at the same time Friday. The euro was at $1.1595-1596, down from $1.1618-1619, and at ¥132.23-24, up from ¥131.79-79.

In early trading, the dollar rose above ¥113.80 after hovering above ¥113.70 in overseas trading late last week following the announcement of a strong U.S. personal consumption expenditures price index in August.

The greenback climbed above ¥113.90 in midmorning trading thanks to purchases from Japanese importers, traders said.

After moving around ¥113.90 in afternoon trading, the U.S. currency retook ¥114 in late trading, lifted by buy orders from European players, traders said.

“The risk tolerance of the market increased” in late hours after currency market players, in European trading hours, took heart from a deal struck between the United States and Canada to revamp the North American Free Trade Agreement, said an official of a bank-linked securities company said.

One market source said there were dollar purchases backed by real demand at the beginning of the month and the latter half of the current fiscal year.

Meanwhile, a currency broker said that “selling (of the dollar) to lock in profits is likely to emerge around ¥114” after the dollar’s continued advance.

But the official of the bank-affiliated securities firm said the dollar is expected to test levels above ¥114.70 in the near future, marked in early November last year.

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