Business / Financial Markets | CURRENCY MARKET

Dollar firms above ¥108.60 in Tokyo

JIJI

The dollar firmed above ¥108.60 in Tokyo trading Monday, backed by higher stock prices and U.S. long-term interest rates.

At 5 p.m., the dollar stood at ¥108.66-66, up from ¥108.46-46 at the same time on Friday. The euro was at $1.1293-1293, up from $1.1262-1262, and at ¥122.71-71, up from ¥122.15-16.

After dipping below ¥108.40, the dollar topped ¥108.50 on real demand-backed buying around midmorning. The U.S. currency further strengthened against the yen in the afternoon, as investors cheered the Nikkei stock average’s advance and rises in U.S. long-term interest rates in off-hours trading, traders said.

“Sentiment was brightened by a U.S. decision to indefinitely suspend plans to impose tariffs on Mexican goods,” said a trust bank official.

The interest rates went up on activated selling of U.S. Treasuries that had been overly purchased, an official at a major securities firm said.

But the dollar’s advance would be limited amid strong expectations for an interest rate cut by the U.S. Federal Reserve, traders forecast, adding that more dismal U.S. economic indicators would boost the rate cut speculation.