Business / Financial Markets | CURRENCY MARKET

Dollar tops ¥106.20 in late Tokyo trading


The dollar rose above ¥106.20 in Tokyo trading late Wednesday, helped by a bout of buying by European players.

At 5 p.m., the dollar stood at ¥106.23-23, up from ¥105.98-98 at the same time on Tuesday. The euro was at $1.0991-0992, up from $1.0938-0939, and at ¥116.76-77, up from ¥115.94-94.

After moving around ¥105.90 in the early morning, pulled down by poor results of the U.S. Institute for Supply Management’s manufacturing index for August, the dollar gradually rose to around ¥106 in the morning.

The climb was supported by rises in the benchmark 225-issue Nikkei stock average and U.S. long-term interest rates in off-hours trading.

Although the greenback moved sluggishly around ¥106 for the majority of the afternoon as market players refrained from active trading, European participants stepped up dollar buying in late trading, pushing the dollar above ¥106.20.

“Market sentiment was improved by good results of China’s Caixin service sector purchasing managers’ index” for August, an official at a trust bank said.

While suggesting that news reports saying that Hong Kong will withdraw a controversial extradition bill supported the dollar’s rise, an official at a major Japanese bank said that such reports were “not a big trading incentive.”

Market players are focused on the announcement of U.S. employment statistics for August and a debate session with U.S. Federal Reserve Chairman Jerome Powell, which are scheduled later in the week.

The official at the trust bank said that the dollar is expected to move mainly around ¥106 until such events, while market players wait for a new trading incentive.

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