Business / Financial Markets

Dollar tad firmer above ¥105.60 in late Tokyo trading

JIJI

The dollar was a tad firmer above ¥105.60 in late Tokyo trading Tuesday, aided by the greenback’s relative strength against European currencies including the euro.

At 5 p.m., the dollar stood at ¥105.62, up from ¥105.57 at the same time Monday. The euro was at $1.1710, up from $1.1696, and at ¥123.69, up from ¥123.47.

In New York trading Monday, the dollar hit fresh four-month lows around ¥105.10 amid growing concerns over the intensifying U.S.-China tensions.

In Tokyo on Tuesday, the greenback rose above ¥105.40 around noon, supported by real demand-backed dollar buying and a rise in the benchmark 225-issue Nikkei average, the traders said.

The dollar approached ¥105.70 in the afternoon, reflecting a rise in Shanghai stocks, higher U.S. long-term interest rates in off-hours trading and the dollar’s relative firmness against European currencies, the traders said.

But the dollar cut its gains in late trading, with its topside capped by selling on a rally, according to the traders.

“Dollar buybacks to adjust positions increased before the U.S. Federal Reserve starts a two-day Federal Open Market Committee meeting Tuesday,” a Japanese bank official said.

“The U.S.-China tensions may intensify further, but the issue’s impact on the market has been limited so far,” said an official of a foreign exchange margin trading service firm.

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