Business / Financial Markets | CURRENCY MARKET

Dollar marginally higher above ¥108.70 in late Tokyo trades

JIJI

The dollar was marginally firmer above ¥108.70 in Tokyo trading late Thursday, supported by repurchases.

At 5 p.m., the dollar stood at ¥108.78-78, up from ¥108.60-61 at the same time Wednesday. The euro was at $1.1387-1387, down from $1.1393-1393, and at ¥123.87-87, up from ¥123.74-75.

In early trading, the dollar moved around ¥109.00-10, carrying over its strength from overnight trading overseas where the U.S. currency was supported by higher U.S. stock prices, traders said.

The greenback fell below ¥108.90 later in the morning due to selling by domestic importers and the benchmark 225-issue Nikkei stock average’s downturn to negative territory, traders said.

Thanks to buybacks, the dollar was buoyed to around ¥109 toward noon.

The dollar weakened gradually versus the yen in afternoon trading, before falling below ¥108.80 in late hours in line with a drop in long-term U.S. interest rates, traders said.

According to a think tank official, dollar purchases were short-lived as currency market traders were paying attention to the ¥109 line as a resistance level for the dollar after it tumbled from the threshold on Jan. 3.

“A wait-and-see mood grew, with the Brexit problem expected to be prolonged further,” although yen sales were seen amid a risk-on mood after U.K. Prime Minister Theresa May’s government survived a no-confidence vote Wednesday, a currency broker said.