The dollar strengthened to around ¥109.70 in Tokyo trading Monday, on the back of higher U.S. interest rates.
At 5 p.m., the dollar stood at ¥109.69, up from ¥109.42 at the same time Friday. The euro was at $1.2117, down from $1.2182, and at ¥132.91, down from ¥133.31.
The dollar exceeded ¥109.80 in midmorning trading, pushed up by a rise in the U.S. long-term interest rates and Japanese importers’ demand.
Transactions lacked vigor in the afternoon, with players retreating to the sidelines ahead of the U.S. Federal Reserve’s two-day Federal Open Market Committee meeting from Tuesday.
A Japanese securities firm official expressed willingness to know the Fed’s current view on the U.S. economy, which has shown signs of improving further.
Many players said they were closely watching the FOMC meeting so they could forecast movements of U.S. interest rates.
“Dollar purchases based on the recent interest rate rise have limits,” a bank official said.
In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.