The dollar was firmer around ¥107 in Tokyo trading Wednesday, thanks chiefly to higher stock prices in Japan and abroad, but its topside was capped by profit-taking.
At 5 p.m., the dollar was at ¥106.95-96, up from ¥106.56-57 at the same time Tuesday. The euro was at $1.2714-2715, down from $1.2826-2827, and at ¥135.99-136.01, down from ¥136.69-70.
The dollar traded at levels around ¥107 in early trading, carrying over its solid tone from overnight trading overseas, where the greenback was aided by rises in U.S. stock prices and long-term interest rates.
The dollar was also supported by data showing Tuesday that U.S. existing home sales grew stronger than expected in September, market sources said.
Although the dollar drew buying from real demand-backed players in midmorning trading, the U.S. currency briefly fell to around ¥106.80 as Tokyo stocks cut some of their early gains at one point.
Currency players moved to sell the dollar to lock in profits as Tokyo stocks’ gains in the morning were limited despite an overnight surge in U.S. shares, market sources said.
via Japan News
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