Business / Financial Markets | CURRENCY MARKET

Higher stock prices sees dollar firmer around ¥109.40 in Tokyo trading

JIJI

The dollar scaled to around ¥109.40 in Tokyo trading Friday, aided by higher stock prices in Japan and abroad.

At 5 p.m., the dollar stood at ¥109.36-36, up from ¥108.78-78 at the same time Thursday. The euro was at $1.1390-1393, up from $1.1387-1387, and at ¥124.57-57, up from ¥123.87-87.

After moving tightly between ¥109.10 and ¥109.20 in early trading, the dollar rose to around ¥109.40 later in the morning, thanks to buying spurred by the 225-issue Nikkei average’s powerful rebound in the wake of an extended rally on Wall Street overnight Thursday, traders said.

The U.S. currency lost steam for a while in the afternoon as a wait-and-see mood spread ahead of the three-day weekend in the United States. But the greenback began moving up again in late trading following Chinese stocks’ rise, which generated a risk-on mood, an official at a major brokerage firm said.

A Japanese bank official said rises in U.S. interest rates helped the dollar break the ¥109.10 resistance line.

Still, players cannot buy the dollar actively as long as the partial government shutdown continues in the United States and the U.S.-China trade dispute goes on, an official at a foreign exchange margin trading service company said.