Business / Financial Markets | CURRENCY MARKET

Dollar briefly hits one-month highs above ¥113.40 in Tokyo

JIJI

The dollar Tuesday afternoon briefly hit one-month highs above ¥113.40 in Tokyo, supported by purchases from short-term players.

At 5 p.m., the dollar stood at ¥113.33-33, up from ¥113.17-18 at the same time Monday. The euro was at $1.1413-1413, up from $1.1382-1382, and at ¥129.34-34, up from ¥128.83-83.

The dollar drifted around ¥113.20 in early trading and climbed to around ¥113.30 later in the morning thanks to a rebound by the Nikkei 225 stock average.

The buying spree ran its course toward noon, but the greenback regained steam to top ¥113.40 in the afternoon as short-term players moved to buy the U.S. currency while a wait-and-see mood spread ahead of the U.S. midterm elections Tuesday, traders said.

Still, the dollar shed some of the gain to fall back below that mark in late trading.

An official of a foreign exchange margin trading service firm said that the dollar’s advance “was backed by purchases induced by the Nikkei’s rebound.”

But the U.S. unit was sold back as investors found it difficult to step up dollar buying further ahead of the key U.S. elections, the official added.

The Democratic Party is expected to regain the House of Representatives, while the Republicans are seen keeping their Senate majority.

If the Republicans suffer a huge setback in the House, it could be taken as a vote of no confidence against the Trump administration, possibly driving down stocks and the dollar as a result, the margin trading service company official said.

Meanwhile, an official of a Japanese bank pointed out that some investors moved to purchase the dollar on the back of the view that Republicans were catching up with their Democratic House opponents.