Business / Financial Markets | CURRENCY MARKET

Dollar rises to around ¥108.60 in quiet Tokyo trading

JIJI

The dollar firmed around ¥108.60 in subdued Tokyo trading Monday, pushed up by higher U.S. long-term interest rates.

At 5 p.m., the dollar stood at ¥108.56-56, up from ¥108.20-20 at the same time Friday. The euro was at $1.1213-1213, down from $1.1284-1284, and at ¥121.74-74, down from ¥122.10-10.

The dollar rose above ¥108.60 in midmorning on real demand-backed purchases by Japanese importers and buying sparked by a rise in U.S. long-term interest rates in off-hours trading. After scaling to around ¥108.70, however, the U.S. currency met with selling to take profits, traders said.

Trading lacked vigor as players found it difficult to move ahead of the U.S. Federal Reserve’s two-day Federal Open Market Committee meeting from Tuesday, a domestic bank official said.

Investors are keenly waiting for the FOMC meeting as well as the upcoming Group of 20 summit in Osaka at a time when “central banks around the globe show more bearish economic outlooks than economic indicators do,” a trust bank official said.