Business / Financial Markets | CURRENCY MARKET

Higher European stock prices help push dollar to ¥112.62 in late Tokyo trading


The dollar was firmer above ¥112.60 in Tokyo trading late Thursday, thanks to renewed buying sparked by higher European stock prices.

At 5 p.m., the dollar stood at ¥112.62-62, up from ¥112.23-23 at the same time Wednesday. The euro was at $1.1513-1513, down from $1.1563-1563, and at ¥129.67-67, down from ¥129.78-79.

The dollar rose above ¥112.70 in the early morning as dollar buying triggered by higher U.S. long-term interest rates overnight continued into Tokyo trading, traders said.

The U.S. currency dropped to levels around ¥112.50 in midmorning trading, weighed down by selling to lock in profits and a drop in the 225-issue Nikkei stock average.

After hovering around that level, the dollar regained upward momentum in late trading and rose above ¥112.60 thanks to renewed buying spurred by a strong start of European stocks, traders said.

“The dollar moved up slightly as yen buying for risk aversion abated” after a robust start of European stocks, an official of a foreign exchange margin trading service firm said.

The dollar buying will likely strengthen further on speculation of wider interest rate gaps between Japan and the United States, the official said.