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Dollar capped below 149 yen in Tokyo

The dollar caps below 149 yen in Tokyo trading. (AFP)
The dollar caps below 149 yen in Tokyo trading. (AFP)
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25 Oct 2022 07:10:14 GMT9
25 Oct 2022 07:10:14 GMT9

Tokyo: The dollar was mostly capped below 149 yen in Tokyo trading Tuesday, amid fears of fresh yen-buying intervention by Japanese authorities.

At 5 p.m., the dollar stood at 148.92-96 yen, down from 149.25-29 yen at the same time Monday. The euro was at 0.9856-9856 dollar, up from 0.9834-9835 dollar, and at 146.78-80 yen, almost unchanged from 146.79-80 yen.

The dollar, which moved below 148.90 yen in early trading, topped 149 yen in the midmorning, aided by active buying by Japanese importers for settlement purposes.

But it failed to gain further ground amid concerns about another market intervention by the Japanese government and the Bank of Japan.

After moving around 148.90 yen around noon, the greenback slipped through 148.80 yen in the early afternoon, pressured by position-adjusting selling.

Later, the U.S. currency showed resilience and traded above 148.90 yen.

The dollar’s downside was supported by buying stemming from expectations for a wider interest rate gap between the United States and Japan, and Japan’s trade deficit, market sources said.

But caution over Japan’s currency market intervention grew when the U.S. unit reached 149 yen, preventing it from rising further, the sources said.

“Many investors are keen to confirm the outcome” of the BOJ’s two-day Policy Board meeting from Thursday, a major Japanese bank official said, suggesting that a wait-and-see mood is likely to prevail for now.

JIJI Press

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