Business / Financial Markets | CURRENCY MARKET

Dollar firms around ¥108.70 in Tokyo

JIJI

The dollar advanced to around ¥108.70 in Tokyo trading Wednesday, reflecting unabated risk appetite among investors.

At 5 p.m., the dollar stood at ¥108.65-65, up from ¥108.34-35 at the same time Tuesday. The euro was at $1.1035-1035, up from $1.1020-1021, and at ¥119.89-90, up from ¥119.40-41.

The dollar fluctuated in a narrow range above ¥108.80 in the early morning after rising close to ¥108.90 in overseas trading hours on a U.S. stock market rally and a rise in U.S. long-term interest rates. Media reports that Britain and the European Union are edging closer to a Brexit deal also encouraged investors to buy the dollar, traders said.

The dollar temporarily neared ¥108.60 on the news about China’s harsh reaction to the U.S. House of Representative’s passage of a bill backing pro-democracy protesters in Hong Kong.

After showing some resilience, the greenback went sideways amid a dearth of major trading incentives.

“Moves to seek risk assets such as the dollar are continuing,” said an official at a foreign-affiliated securities company.

“After breaching levels around ¥108.50, where sell orders from Japanese exporters lined up, the dollar is now moving stably above the threshold,” said an official at a major brokerage firm.

Meanwhile, a Japanese bank official questioned the sustainability of the dollar-favorable environment, saying that many of external conditions are politically oriented, including U.S.-China tensions and the Brexit issue, and, thus, are fluid.

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