Business / Financial Markets | CURRENCY MARKET

Dollar rises to above ¥109.50 in Tokyo

JIJI

The dollar was firmer above ¥109.50 in Tokyo trading Monday, supported by an advance in U.S. stocks late last week.

At 5 p.m., the dollar stood at ¥109.57-58, up from ¥109.36-36 at the same time Friday. The euro was at $1.1385-1386, slightly down from $1.1390-1393, and at ¥124.75-77, up from ¥124.57-57.

The dollar was around ¥109.60-70 in early trading, carrying over its strength from overseas trading Friday, where the U.S. currency rose to around ¥109.90 on the back of higher U.S. stocks.

Toward noon, the U.S. currency rose to around ¥109.70 after a sense of relief spread among currency market players after the release of Chinese gross domestic product data.

Players were relieved that the Chinese growth data were not as weak as expected, an official at a foreign exchange margin trading service firm said.

But the U.S. currency weakened against the yen in the afternoon as trading lacked incentives for the dollar to test its upside after the release of the Chinese data, the official said.

“The dollar is prone to selling by Japanese exporters when it approaches ¥110,” an official of a think tank affiliated with a brokerage firm said.

While trading was already thin due to the closure of the U.S. market Monday, a wait-and-see mood prevailed in late hours as British Prime Minister Theresa May is scheduled to set out her next steps for Brexit on Monday, traders said.