Business / Financial Markets

Dollar moves slightly above ¥107 in Tokyo trading

Jiji

The dollar moved slightly above ¥107 in Tokyo trading Friday.

At 5 p.m., the dollar stood at ¥107.10, up from ¥106.95 at the same time Thursday. The euro was at $1.1390, down from $1.1407, and at ¥122.01, up from ¥121.99.

Carrying over its strength from overseas trading, the dollar moved around ¥107.30 in the early morning of Tokyo trading.

The U.S. currency, however, eased to around ¥107.20 yen in the afternoon, reflecting a drop in the benchmark 225-issue Nikkei average, before succumbing to selling pressure to fall to around ¥107.10 in late trading.

An official at a foreign exchange margin trading service firm noted that many market players were engaging in dollar buying, moving in step with a fall in Tokyo stocks and the rising Japanese government bond market.

An official at a life insurance company noted that participants of the foreign exchange market were looking closely at whether European countries will agree to set up a €750 billion recovery fund, proposed by the European Commission.

Leaders of the European Union member states will hold a two-day summit from later Friday.

“If the outcome is not what the market expects, market sentiment may deteriorate,” the official warned.

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