Business / Financial Markets

Dollar firmer above ¥107.50 in Tokyo trading

Jiji

The dollar was firmer above ¥107.50 in late Tokyo trading on Monday, supported by a rise in Japanese stock prices.

At 5 p.m., the dollar stood at ¥107.52, up from ¥107.19 at the same time on Friday. The euro was at $1.1148, up from $1.1104, and at ¥119.87, up from ¥119.04.

A drop in U.S. long-term interest rates in off-hours trading limited the dollar's advance, traders said.

"Movements of foreign exchange rates were sluggish compared with those of stock prices," an official of a bank-affiliated securities firm said.

A report on Monday that new auto sales in Japan in May plunged 44.9 percent from a year before may have been a bearish factor for the dollar, traders said.

"The data cool market sentiment as a sign of sluggish consumption," an official of a foreign exchange margin trading service firm said.

"Euro buying in recent days has limited the dollar's topside against the European currency, making the dollar also top-heavy against the yen," an official of another foreign exchange margin trading service firm said.

The official said that the euro has attracted purchases recently amid expectations for the reopening of the European economy from coronavirus shutdowns as well as for progress in a bailout of Deutsche Lufthansa.

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