Business / Financial Markets | CURRENCY MARKET

Dollar firmer above ¥113.50 in late Tokyo trading

JIJI

The dollar was firmer above ¥113.50 in Tokyo trading late Friday, gaining strength thanks to spillover effects from selling of European currencies.

At 5 p.m., the dollar stood at ¥113.55, up from ¥113.38 at the same time on Thursday. The euro was at $1.1355, down from $1.1382, and at ¥128.94, down from ¥129.06.

After moving around ¥113.60 in early trading, the dollar fell below ¥113.50 in midmorning trading as the benchmark 225-issue Nikkei stock average fell sharply, and moved around the level later, traders said.

In late trading, the greenback rose back above ¥113.50 as euro selling against the dollar by European players ahead of the European Union summit spilled over into the dollar-yen rate, traders said.

The dollar’s fall against the yen was limited compared with the Nikkei’s tumble, an official of a foreign exchange margin trading service said.

“The dollar was bought back after being oversold the previous week,” the official said.

“Investors found it difficult to boost trading” ahead of the U.S. Federal Reserve’s two-day Federal Open Market Committee from Tuesday, a think tank official said.