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The dollar rose to around ¥108.30 in Tokyo trading late Tuesday, mainly due to a climb in U.S. long-term interest rates in off-hours trading.

At 5 p.m., the dollar stood at ¥108.34-34, up from ¥107.85-86 at the same time Tuesday. The euro was at $1.0887-0891, down from $1.0935-0935, and at ¥117.96-97, up slightly from ¥117.93-94.

The dollar gradually gained ground to exceed ¥108.20 in the morning, pushed up by buying by Japanese importers for settlement purposes and a rise in the benchmark Nikkei 225 stock average.

In the afternoon, the greenback temporarily exceeded ¥108.40 on the back of the rise in U.S. long-term rates.

“The underside of the dollar is gradually rising,” an official of a trust bank said.

Some market sources have suggested that the U.S. currency may surpass ¥108.50 if the market finds good news, including one that will fuel expectations for progress in the U.S.-China trade talks.

While an official at a Japanese bank noted that the dollar came under selling to a certain degree immediately after the release of a better than expected tankan quarterly business sentiment survey for September by the Bank of Japan, the announcement was met with a thin reaction from the market as a whole.

Chinese President Xi Jinping’s speech at an event to celebrate the 70th anniversary of the country’s founding and the situation in Hong Kong were closely watched by market participants. But “there was nothing (in such events) that would immediately affect the market,” an official at a Japanese securities firm said.

A wait-and-see mood spread in the market in the afternoon, before major events, including the release later Tuesday of the U.S. Institute for Supply Management’s manufacturing index for September.

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