Business / Financial Markets | CURRENCY MARKET

Dollar firms above ¥112.70 in late Tokyo trading

JIJI

The dollar was firmer above ¥112.70 in Tokyo trading late Monday amid a growing risk-on mood generated by higher Japanese and Chinese stock prices.

Some receding of excessive concerns over Italy’s fiscal condition also pushed up the dollar in late trading.

At 5 p.m., the dollar stood at ¥112.75-75, up from ¥112.43-43 at the same time Friday The euro was at $1.1531-1532, up from $1.1446-1446, and at ¥130.02-03, up from ¥128.70-70.

After falling below ¥112.40 following a weak start of the Nikkei 225 stock average, the dollar picked up and regained some lost ground as the Nikkei trimmed early losses, traders said.

As the Nikkei popped into positive territory in the afternoon, helped by a rise of over 4 percent in the key Shanghai stock index after Chinese authorities announced measures to support stock price last weekend, the greenback gained further steam and rose firmly above ¥112.60, traders said.

In late trading, the dollar rose above ¥112.70 thanks to some easing of concerns over Italy’s finances, traders said.

“Investors’ risk appetites improved out of expectations for a pause in global stock sell-offs following a rise in Chinese stocks,” an official of a bank-affiliated securities firm said.

The dollar will likely head for ¥113 if stock prices resist falling in the event of higher U.S. long-term interest rates, but this will take some more time, an official of a Japanese bank said.

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