Business / Financial Markets | CURRENCY MARKET

Dollar tops ¥109 for first time in two months in Tokyo trading


The dollar rose above ¥109 for the first time in some two months in Tokyo trading Thursday, attracting buying after the U.S. Federal Reserve chief’s hawkish remark.

At 5 p.m., the dollar stood at ¥109.14, up from ¥108.55-56 at the same time Wednesday. The euro was at $1.1032, down from $1.1151, and at ¥120.41-42, up from ¥121.06-07.

Fed Chairman Jerome Powell’s description of the U.S. central bank’s 0.25 percentage-point interest rate cut as “a midcycle adjustment to policy” at a news conference Wednesday fueled dollar-buying against the yen, lifting the greenback to ¥109.30 in the morning.

“The dollar topped ¥109 on buying by short-term players, such as commodity investment advisers, and the rise above the psychologically important threshold prompted purchases by dollar-short investors to cut losses,” a currency broker said.

The U.S. currency later moved narrowly between ¥109.10 and ¥109.20 due to a dearth of fresh buying incentives.

Coronavirus banner