Business / Financial Markets | CURRENCY MARKET

Dollar firms to around ¥111.60 in Tokyo as long-term rates climb in U.S.

JIJI

The dollar was stronger around ¥111.60 in Tokyo trading late Thursday, helped by higher long-term interest rates in the United States.

At 5 p.m., the dollar stood at ¥111.58-61, up from ¥111.32-32 at the same time on Wednesday. The euro was at $1.1323-1323, up from $1.1279-1280, and at ¥126.36-36, up from ¥125.56-57.

After moving around ¥111.10-20 in early trading, the dollar rose to around ¥111.50 later in the morning on the back of the benchmark 225-issue Nikkei stock average’s rebound and higher long-term U.S. interest rates.

The U.S. currency gained further ground to around ¥111.60 in afternoon trading owing partly to stop-loss buy orders before its topside was somewhat limited in the late hours due to profit-taking.

A currency broker noted that “sluggish movements of Asian stocks in the afternoon put pressure” on the dollar’s topside.

In late trading, currency market players retreated to the sidelines to see the outcome of a British parliamentary vote later on Thursday on postponing the March 29 deadline for Britain’s exit from the European Union, according to an official of a major securities firm.

An official of a foreign-exchange margin trading service firm pointed to the possibility of the dollar having been bought against the yen “amid speculation that the Bank of Japan may implement additional monetary easing steps.”

The BOJ’s two-day policy-setting meeting will end on Friday.