Business / Financial Markets | CURRENCY MARKET

Dollar firms to around ¥110.20 in Tokyo trading

JIJI

The dollar firmed modestly Tuesday to trade around ¥110.20 in Tokyo, supported by a stock market rally.

At 5 p.m., the dollar stood at ¥110.19-19, up from ¥110.06-06 at the same time Monday. The euro was at $1.1312-1312, up from $1.1307-1307, and at ¥124.65-65, up from ¥124.45-45.

After moving around ¥110.00, the dollar topped ¥110.20 in midmorning trading in line with a sharp rebound by the Nikkei 225 stock average. But the greenback lost steam when it approached the ¥110.30 threshold.

Selling of dollars for yen for settlement purposes ahead of the fiscal 2018 end on Sunday pushed the U.S. currency down, close to ¥110, around noon, traders said.

In the afternoon, the dollar moved narrowly between ¥110 and ¥110.20 amid a lack of trading incentives, market sources said.

Investors increasingly retreated to the sidelines to wait for the announcements of U.S. economic data, including the Conference Board’s consumer confidence index for March, a currency broker said.

An official at a Japanese bank said the dollar repeated minor ups and downs on buying on higher stocks and selling on lower U.S. long-term interest rates.

Safe-haven buying of the yen vis-a-vis the dollar came to a halt as excessive global slowdown fears receded after the release of a strong German economic index, an official at a foreign exchange margin trading service firm noted.