Business / Financial Markets | CURRENCY MARKET

Dollar slightly firmer above ¥106.40 in late Tokyo trading

JIJI

The dollar was slightly firmer above ¥106.40 in late Tokyo trading Tuesday after shedding some of its earlier gains in the face of profit-taking.

At 5 p.m., the dollar stood at ¥106.46-46, up from ¥106.40-40 at the same time Monday. The euro was at $1.1072-1072, down from $1.1104-1104, and at ¥117.87-87, down from ¥118.15-15.

In early trading, the dollar moved above ¥106.60, following its advance in overseas markets on Monday amid growing expectations for fiscal stimulus in Germany and China.

The dollar rose close to ¥106.70 in the midmorning on the back of demand from Japanese importers. But the currency fell below ¥106.60 later in the morning, pressured by selling on a rally.

In the afternoon, the dollar moved in a narrow range above ¥106.50 before slipping below that mark on a wave of profit-taking.

The dollar “tends to face selling pressure when it comes close to ¥107,” an official of a Japanese securities firm noted.

Trading will be limited to position adjustments for now, with market players waiting for a speech by U.S. Federal Reserve Chairman Jerome Powell at a key financial symposium in Jackson Hole, Wyoming, on Friday, an official at a foreign exchange margin trading service firm said.