Business / Financial Markets | CURRENCY MARKET

Dollar firmer around ¥112.80 in Tokyo

JIJI

The dollar was stronger around ¥112.80 in Tokyo trading late Tuesday, aided by robust Tokyo stock prices.

At 5 p.m., the dollar stood at ¥112.80-81, up from ¥111.92-92 at the same time on Monday. The euro was at $1.1363-1363, down from $1.1408-1408, and at ¥128.18-19, up from ¥127.69-69.

The dollar moved above ¥112.30 in early trading after rising above ¥112.50 in overseas trading overnight thanks to a strong U.S. economic indicator announced on Monday, traders said.

Toward noon, the greenback rose to levels close to ¥112.70, supported by month-end purchases from real demand-backed players and a rise in the benchmark 225-issue Nikkei stock average.

After falling below the level due to a halt to the advance of the Nikkei and Chinese stocks, the dollar rebounded and climbed above ¥112.80 in late trading on the back of higher long-term U.S. interest rates.

The dollar drew buying against the yen on hope for an easing of trade tensions between the United States and China following U.S. President Donald Trump’s reported remarks that he expects a great deal with China on trade, traders said.

An official of a foreign exchange margin trading service firm said the higher U.S. interest rates and the dollar’s advance against the yen came as fresh U.S. tariffs on Chinese products can exert inflationary pressure in the United States.

The dollar attracted “buybacks to adjust positions toward the month-end” after falling below ¥111.50 late last week, an official of a Japanese bank said.