The dollar firmed to around ¥103.30 in Tokyo trading Thursday, aided by rises in the benchmark 225-issue Nikkei average and U.S. long-term interest rates.
At 5 p.m., the dollar stood at ¥103.36, up from ¥102.76 at the same time Wednesday. The euro was at $1.2311, down from $1.2338, and at ¥127.25, up from ¥126.79.
In overseas trading overnight, the dollar gained ground after the Democratic victories in the U.S. Senate runoff elections in the state of Georgia, but fell back later due to concerns over the storming of the U.S. Capitol by supporters of President Donald Trump.
In early Tokyo trading, the dollar stood around ¥103.00.
The greenback then rose on buying by importers for settlement purposes as well as purchases by foreign investors who took heart from the surge of the Nikkei average and higher U.S. long-term interest rates in off-hours trading, according to a currency broker.
But market sentiment chilled slightly in the afternoon after media reports that four people died in the Capitol breach and over 2,000 people were newly confirmed to be infected with the novel coronavirus in Tokyo the same day.
The dollar inched up in late trading, as “market players sold the euro to lock in profits due to a cautious mood over its appreciation,” an official at a Japanese bank said.
The official added that there was a wait-and-see mood in the market ahead of a news conference by Prime Minister Yoshihide Suga later on Thursday over the government’s declaration of a state of emergency for the Tokyo metropolitan area, and of the release of U.S. December employment statistics on Friday.
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