Business / Financial Markets | CURRENCY MARKET

Dollar inches up above ¥108.80 in Tokyo

JIJI

The dollar rose modestly to top ¥108.80 in Tokyo trading Thursday amid lingering optimism over a Brexit deal between the U.K. and the European Union.

At 5 p.m., the dollar stood at ¥108.83-84, up from ¥108.65-65 at the same time Wednesday. The euro was at $1.1077-1077, up from $1.1035-1035, and at ¥120.56-56, up from ¥119.89-90.

The dollar moved on a firm note in the early morning in tandem with the euro and the British pound on the back of expectations for London and Brussels to strike a deal ahead of the Oct. 31 deadline for the U.K.’s exit from the EU, traders said.

The U.S. currency climbed further to surpass ¥108.80 in the midmorning, thanks to solid moves of the Nikkei stock average and a rise in the Australian dollar.

After taking a downturn on the Nikkei’s failure to extend gains and struggling for direction for a while, the dollar gathered steam again in late afternoon trading.

“Taken as a whole, the dollar’s advance took a pause today,” an asset manager said.

But an official at a bank-affiliated securities firm pointed out that the underlying positive sentiment toward the dollar continued, saying, “Expectations remain for dollar-favorable events including a Brexit deal.”

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