Business / Financial Markets | CURRENCY MARKET

Dollar higher above ¥108.90 in Tokyo trading


The dollar was higher above ¥108.90 in Tokyo trading late Wednesday, helped by buybacks.

At 5.p.m., the dollar stood at ¥108.95, up from ¥108.81-82 at the same time Tuesday. The euro was at $1.1215, up from $1.1207-1208, and at ¥122.19-20, up from ¥121.96.

The dollar traded around ¥108.90 in the early morning, carrying over its strength from overnight trading overseas, where the greenback moved on a solid tone supported by a rise in U.S. long-term interest rates, traders said.

The dollar rose to levels close to ¥109 on real demand-backed purchases in midmorning trading, but selling on a rally capped its upside around the level, traders said.

After slipping below ¥108.90 in the afternoon, the dollar approached ¥109 again in late trading, aided by repurchases, traders said.

The dollar’s downside was supported by “somewhat reduced expectations for a U.S. interest rate cut after the release of a strong U.S. government jobs report” for June, a bank official said.

Profit-taking emerged when the dollar approached ¥109, a currency broker said.

A wait-and-see mood prevailed ahead of closely watched congressional testimony by U.S. Federal Reserve Chairman Jerome Powell on Wednesday and Thursday, a trust bank official said.