Business / Financial Markets

Greenback climbs to above ¥105 in Tokyo trading

Jiji

The dollar strengthened to levels above ¥105 in Tokyo trading Thursday, attracting real demand-backed buying and buybacks.

At 5 p.m., the dollar stood at ¥105.07-07, up from ¥104.82-82 at the same time Wednesday. The euro was at $1.1757-1759, almost unchanged from $1.1759-1759, and at ¥123.48-59, up from ¥123.24-28.

The dollar rose above ¥105.10 by the mid-morning, thanks to purchases by Japanese importers for settlement purposes as well as buybacks in the wake of a drop below ¥104.80 in overnight overseas trading stemming from the U.S. Federal Reserve’s decision to maintain its monetary easing policy. In the afternoon, the greenback fell back below ¥105.10 after nearing ¥105.30.

Players turned to wait for U.S. gross domestic product data for April-June and weekly unemployment insurance claims that were due out later on Thursday, traders said.

“If the U.S. economy’s deterioration proves not worse than expected, the yen would no longer attract buying vis-a-vis the dollar,” a trust bank official said.

Meanwhile, an official at a foreign-exchange margin trading firm noted that the dollar may sink below ¥102 if it fails to stay above ¥104.

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