The dollar climbed above ¥119 for the first time in seven years and four months in Tokyo trading Monday, as falls in crude oil prices spurred dollar purchases.
But the dollar spent only a short time at levels above ¥119, unseen since Aug. 9, 2007. At 5 p.m., the U.S. currency was quoted at ¥118.73-74, still up from ¥118.22-24 at the same time on Friday.
Tokyo stocks gained further ground, supported by the yen’s weakness and stronger-than-expected Japanese business investment data announced by the Finance Ministry in the morning.
The benchmark 225-issue Nikkei average ended up 130.25 points, or 0.75 percent, at 17,590.10 — the highest finish since July 26, 2007.
Falls in crude oil prices benefit the U.S. economy and add downward pressure on Japanese prices, reinforcing speculation of additional monetary policy easing by the Bank of Japan to achieve its 2 percent inflation target, currency market sources said.
via Japan News
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.