Dollar firms around ¥110.50 in Tokyo as stocks climb

The dollar rose to around ¥110.50 in Tokyo trading Thursday, backed by higher Tokyo stock prices.

At 5 p.m., the dollar stood at ¥110.49-49, up from ¥110.00-01 at the same time on Wednesday. The euro was at $1.1891-1891, down from $1.1955-1956, and at ¥131.39-39, down from ¥131.51-53.

The dollar climbed to around ¥110.50 in early trading thanks to buying from Japanese importers, after rising to around ¥110.40 overseas on positive U.S. economic data.

On Wednesday, U.S. real gross domestic product data for April-June were revised upward and Automatic Data Processing Inc.’s U.S. private-sector employment report for August turned out to be stronger than expected.

The U.S. currency briefly fell to around ¥110.30 in midmorning due to profit-taking, but rebounded and topped ¥110.50 before noon due to renewed purchases.

The dollar stayed firm in the afternoon thanks to solid moves in the benchmark Nikkei stock average and briefly rose above ¥110.60 in late trading.

But the dollar failed to extend gains as a wait-and-see mood took hold ahead of the release of the U.S. Labor Department’s jobs data for August, traders said.

“In view of the robust ADP data, market players now expect wage growth to be shown clearly” in the government jobs report, said an official of a foreign-exchange margin trading service firm.

If the data fits the market’s expectations, the dollar could advance to around ¥111.50, the official added.

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