Business / Financial Markets | CURRENCY MARKET

Dollar firms to above ¥108.60 in late Tokyo trading

JIJI

The dollar was firmer above ¥108.60 in Tokyo trading late Tuesday, supported by higher Japanese and Chinese stock prices.

At 5 p.m., the dollar stood at ¥108.65-65, up from ¥108.33-33 at the same time Friday. The euro was at $1.1469-1470, down from $1.1525-1526, and at ¥124.62-63, down from ¥124.86-86. The Tokyo market was closed Monday for a national holiday.

After moving around ¥108.10-20 in early trading, the dollar gradually firmed and rose above ¥108.50 around noon thanks to buybacks induced by the Nikkei 225’s upturn to positive territory, as well as real demand-backed purchases, traders said.

The greenback hovered above ¥108.70 in afternoon trading in line with a rise in Chinese stock prices before falling back below the threshold in late trading.

Risk appetite increased after hope for measures by Chinese authorities to boost the economy pushed up Chinese stock prices, a currency broker said.

An official of a bank-affiliated securities firm said market players “want to assess scenarios after the (possible) rejection” by Britain’s parliament of the Brexit agreement negotiated with the European Union in a vote to be held later Tuesday.

A rejection of the deal has been factored into the market, traders said.