Business / Financial Markets | CURRENCY MARKET

Dollar firmer above ¥108.80 in Tokyo

JIJI

The dollar was firmer above ¥108.80 in Tokyo trading late Tuesday, helped by a rise in U.S. long-term interest rates.

At 5.p.m., the dollar stood at ¥108.81-82, up from ¥108.33-33 at the same time Monday. The euro was at $1.1207-1208, down from $1.1231-1231, and at ¥121.96-96, up from ¥121.68-68.

After trading around ¥108.70 in the early morning, the dollar rose to levels close to ¥108.90 in midmorning trading, aided by a rise in the Nikkei 225 stock average and higher U.S. long-term interest rates in off-hours trading, traders said.

“Improved risk-on sentiment led to higher stock prices and the dollar’s rise against the yen,” an official of a Japanese bank said.

The greenback traded on a weak note in the early afternoon, in step with the movements of the Nikkei and U.S. long-term interest rates.

The dollar approached the ¥108.90 line again in late trading thanks to a rise in U.S. long-term interest rates, traders said.

“The dollar lacked buying incentives to go above ¥109,” an official of a major securities firm said.

Market players are paying close attention to U.S. Federal Reserve Chairman Jerome Powell’s congressional testimony Wednesday and Thursday.

“The market has already factored in an interest rate cut by the Fed in July, and market participants will likely look for hints of future rate cuts” from Powell’s testimony, the Japanese bank official said.