Dollar rises near ¥110.50 as Nikkei retakes 20,000

The dollar rose to near ¥110.50 briefly in Tokyo trading on Friday, with market players heartened to see the benchmark Nikkei stock average end above the 20,000 threshold for the first time in four days.

At 5 p.m., the dollar stood at ¥110.31-32, up from ¥109.76-77 at the same time on Thursday. The euro was at ¥1.1189-1189, down from $1.1259-1260, and at ¥123.44-44, down from ¥123.59-59.

After climbing above ¥110.30 in overseas trading overnight, the U.S. currency temporarily sagged below ¥109.80 early Friday morning in Tokyo, as currency players moved to avoid risks following exit polls suggesting that Britain’s ruling Conservative Party is seen falling short of a majority in the House of Commons in Thursday’s general election.

However, the greenback showed resilience later, supported by buying sparked the Nikkei average’s rally above 20,000 on the Tokyo Stock Exchange and purchases by importers, traders said.

Also, the dollar drew buying after the British pound fell versus the greenback and many other currencies reflecting media reports that the Conservative Party is certain to have lost its majority in the chamber in the election, they said.

Meanwhile, former U.S. Federal Bureau of Investigation Director James Comey’s closely watched testimony at a Senate committee overnight did not have a major impact on the currency market as he revealed nothing new about alleged collusion between Russia and Donald Trump during Trump’s campaign for the 2016 U.S. presidential election, market sources said.

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