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The dollar advanced to around ¥110.90 in Tokyo trading late Wednesday on demand-backed buying and a rise in U.S. interest rates.

At 5 p.m., the dollar stood at ¥110.87, up from ¥110.48 at the same time Tuesday. The euro was at $1.1938, up from $1.1901, and at ¥132.36, up from ¥131.49.

The dollar attracted purchases by Japanese importers for settlement purposes and buying on the firming of U.S. long-term interest rates in off-hours trading to reach around ¥110.80 in the morning.

The greenback turned down on profit-taking toward noon, before rebounding due to the effects of the euro’s appreciation against the yen.

“Strong upward pressure on the dollar based on expectations for the normalization of U.S. monetary policy is likely to continue,” an official at a Japanese think tank said, after U.S. Federal Reserve Chairman Jerome Powell said at his congressional testimony Tuesday that he expects employment to recover strongly by autumn.

Meanwhile, an official at a Japanese securities firm said that it is unlikely for risk-avoiding yen-buying to intensify as Japanese and foreign stock markets are recovering from a major correction.

The think tank official added that he expects the dollar to top ¥111 soon.

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