Business / Financial Markets | CURRENCY MARKET

Dollar solid around ¥112.10 in late Tokyo trading

JIJI

The dollar was firmer around ¥112.10 in Tokyo trading late Tuesday, assisted by higher U.S. long-term interest rates in off-hours trading.

At 5 p.m., the dollar stood at ¥112.10-10, up from ¥111.79-79 at the same time Monday. The euro was at $1.1593-1594, up from $1.1567-1568, and at ¥129.96-97, up from ¥129.32-32.

The dollar firmed above ¥111.80 in early trading after marking a one-month low below ¥111.70 the previous day.

The greenback accelerated its upswing in midmorning trading to rise above ¥112 in line with a strong performance of the Nikkei 225 stock average.

Finance Minister Taro Aso’s remark showing his negative stance on a currency clause in Japan-U.S. trade talks also brightened market sentiment, traders said.

Supported by higher U.S. interest rates in off-hours trading, the dollar briefly advanced above ¥112.10 in the afternoon.

“The global risk-off mood has subsided a little,” an official of a bank-linked securities firm said, noting relatively firmer stock price movements after sell-offs last week.

Political worries, including concerns over diplomatic ties between Saudi Arabia and the United States and uncertainties about negotiations for Britain’s exit from the European Union, may cap the dollar’s upside versus the yen, an official of a Japanese bank said.

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