The dollar strengthened above ¥112 in Tokyo trading Wednesday, helped by a rise in Tokyo stocks.
At 5 p.m., the dollar stood at ¥112.01-01, up from ¥111.89-89 at the same time Tuesday. The euro was at $1.1317-1317, up from $1.1310-1310, and at ¥126.72-73, up from ¥126.55-55.
The dollar rose to year-to-date highs above ¥112.10 on buying sparked by the 225-issue Nikkei average’s brisk start. But the greenback came under selling pressure from Japanese exporters later in the morning. After moving in a range slightly below ¥112, the U.S. currency went marginally above the threshold in late afternoon trading.
The dollar was also pushed up by stronger-than-expected Chinese economic data released Wednesday, including January-March gross domestic product data, traders said.
“But selling to lock in profits gained strength when the dollar approached ¥112,” said an official at a foreign exchange margin trading service firm.
“The dollar-yen pair has begun attracting position-squaring selling” ahead of the Easter weekend overseas, which includes Good Friday, and the special 10-day national holiday from April 27, an official at a bank-affiliated securities firm said.