Business / Financial Markets | CURRENCY MARKET

Dollar slightly firmer above ¥112.30 in late Tokyo trading


The dollar was marginally higher above ¥112.30 in Tokyo trading late Friday, helped by higher Japanese and Chinese stocks.

At 5 p.m., the dollar stood at ¥112.32, up from ¥112.22 at the same time on Thursday. The euro was at $1.1594, up from $1.1540, and at ¥130.23, up from ¥129.51.

The greenback rose to around ¥112.50 briefly on purchases from Japanese importers as well as those supported by rebounds in Japanese and Chinese stocks from Thursday’s sell-off.

The dollar attracted buybacks versus the yen as “excessive risk aversion receded” thanks to higher stock prices, an official at a foreign exchange margin trading service firm said.

A foreign currency broker said, “The dollar-yen pair was supported by a rise in long-term U.S. interest rates in off-hours trading.”

In late trading, however, the U.S. currency cut some of its gains amid concerns over the near-term movements of U.S. share prices, traders said.

“The dollar’s topside versus the yen is expected to be heavy for a while” as stocks are likely to take some time before heading higher, the foreign exchange margin trading service firm official said.