Business / Financial Markets | CURRENCY MARKET

Dollar rises above ¥111.90 in Tokyo trading

JIJI

The dollar rose modestly above ¥111.90 in calm Tokyo trading Friday.

At 5 p.m., the dollar stood at ¥111.91, up from ¥111.84 at the same time Thursday. The euro was at $1.1243, down from $1.1271, and at ¥125.82, down from ¥126.03.

The dollar slipped through ¥111.90 following a rise in the yield on the benchmark 10-year Japanese government bond prompted by the Bank of Japan’s cut in the amount of JGBs it offered to buy in the day’s market operation, traders said.

But the dip attracted some purchases. Later the greenback moved in a tight range between ¥111.90 and ¥111.95.

“Players held active trading in check” in view of the special 10-day holiday in Japan starting on April 27, an official at a foreign-affiliated securities company said.

Although a risk-on mood has receded thanks to an improved outlook for the Chinese economy, “there are few incentives to push the dollar above ¥112,” an official at a domestic brokerage firm noted.

“Expecting Japanese individual investors and firms to sell dollars to gain yen toward the long holiday, hedge funds may boost speculative yen buying,” the foreign securities firm official added.