Business / Financial Markets | CURRENCY MARKET

Strong Chinese trade data sees dollar hit one-month high of ¥111.86 in late Tokyo trading

JIJI

The dollar was firmer above ¥111.80 in Tokyo trading late Friday, hitting the highest level since March 15, buoyed by strong Chinese trade data for March.

At 5 p.m., the dollar stood at ¥111.86-86, up from ¥111.08-09 at the same time Thursday. The euro was at $1.1288-1288, slightly up from $1.1281-1281, and at ¥126.27-27, up from ¥125.32-33.

The dollar moved around ¥111.60-70 in early trading, carrying over its strength in overnight trading overseas stemming from purchases inspired by a robust U.S. economic indicator.

Later in the morning, the greenback rose further to around ¥111.80 briefly on the back of the benchmark 225-issue Nikkei stock average’s continued advance and real demand-backed purchases, traders said.

After fluctuating around ¥111.70-80 in afternoon trading, the U.S. currency climbed above ¥111.80 in late hours as China’s trade data for March showed healthy growth in exports.

Large-lot purchases of the euro contributed to the yen’s drop, which in turn helped the dollar to advance against the Japanese currency, a currency broker said.

“Dollar purchases gained slight momentum after the U.S. currency rose above a technical threshold at around ¥111.50,” an official of an asset management firm said.

The official also noted that market players became cautious about buying the dollar when it approached ¥112.