Business / Financial Markets | CURRENCY MARKET

Dollar almost unchanged around ¥108.60 in Tokyo


The dollar was almost unchanged around ¥108.60 in Tokyo trading late Wednesday after paring early losses thanks to repurchases.

At 5 p.m., the dollar stood at ¥108.60-61, almost unchanged from ¥108.65-65 at the same time on Tuesday. The euro was at $1.1393-1393, down from $1.1469-1470, and at ¥123.74-75, down from ¥124.62-63.

After moving around ¥108.60-70 in early trading, the dollar fell below ¥108.40 in line with a drop in the benchmark 225-issue Nikkei stock average.

The greenback rose back to around ¥108.50 toward noon thanks to buybacks, traders said.

In the afternoon, the U.S. currency moved narrowly around the threshold amid a dearth of major fresh trading incentives.

In late trading, the dollar firmed to around ¥108.60 on the back of higher long-term U.S. interest rates, traders said.

Tuesday’s rejection by the British Parliament of the Brexit deal between the government of Prime Minister Theresa May and the European Union “wasn’t surprising and had almost no impact on dollar-yen” rate movements, said an official of a foreign exchange margin trading service company.

A wait-and-see mood is growing, with investors hoping to see the outcome of a vote of no confidence that the May government faces later on Wednesday, traders said.

The dollar’s topside versus the yen is increasingly limited as it is difficult for currency market players to purchase the U.S. currency actively amid uncertainty over the impact of the partial U.S. government shutdown, which has become the longest ever, according to a Japanese bank official.