Dollar flat around ¥108.80 in late Tokyo trading

The dollar was almost flat around ¥108.80 in Tokyo trading late Wednesday after recouping its early losses thanks to the resilience of Tokyo stocks as well as a rise in U.S. long-term interest rates.

At 5 p.m., the dollar stood at ¥108.82, almost unchanged from ¥108.86-86 at the same time Tuesday. The euro was at $1.0731-0731, up from $1.0649-0651, and at ¥116.77-79, up from ¥115.94-94.

The dollar was weaker around ¥108.30-40 in early trading, on the back of overnight drops in U.S. long-term interest rates and European and U.S. stock prices.

In midmorning trading, the dollar rose to near ¥108.70 thanks to buying from Japanese importers and a rebound in Tokyo stocks after a weak start. But the U.S. currency came under selling pressure after Tokyo stocks gave up some of their gains.

In late hours, the dollar attracted renewed demand, as the benchmark 225-issue Nikkei stock average closed higher on the Tokyo Stock Exchange.

Also supported by a pickup in U.S. long-term interest rates, the dollar rose to near ¥108.90 at one point.

Still, the greenback grew top-heavy, failing to exceed ¥109.

“The dollar lacked additional factors to push it above ¥109,” an official of a currency brokerage firm said.

“The dollar’s topside was capped by lingering concern over the North Korean situation,” an official at another currency broker said.

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