Business / Financial Markets | CURRENCY MARKET

Dollar firms slightly above ¥106.50 in Tokyo ahead of Fed's Jackson Hole meeting and G7 summit

JIJI

The dollar inched up to top ¥106.50 in lackluster Tokyo trading Wednesday.

At 5 p.m., the dollar stood at ¥106.54-55, up from ¥106. 46-46 at the same time Tuesday. The euro was at $1.1092-1092, up from $1.1072-1072, and at ¥118.18-19, up from ¥117.87-87.

Shrugging off weakness lingering from overnight trading abroad, the dollar exceeded ¥106.40 around midmorning after U.S. long-term interest rates stopped falling and the key Nikkei stock average pared its losses.

In late afternoon trading, the greenback was for a time lifted into a range above ¥109.50 on buying believed driven by European investors, traders said.

“The dollar’s firming can be attributed to a change in the supply-demand balance, since there was no particular market-moving news,” said an official at a foreign-affiliated securities house.

Players found it difficult to tilt positions either way before the U.S. Federal Reserve’s summer seminar at Jackson Hole and the Group of Seven summit being held later this week, the official added.