Dollar Higher, Stocks Mixed
TOKYO (AP) _ Expectations of U.S. interest rate increases sent the dollar higher against the yen today. Tokyo share prices closed mixed in light trading.
By late afternoon, the dollar was trading at 109.90 yen, up 0.62 yen from late Tuesday in Tokyo and also above its 109.80 yen level Tuesday in New York. It ranged between 109.78 yen and 109.97 yen in today’s trading.
The dollar gained on a feeling that the U.S. Federal Reserve may raise interest rates later this month, following Friday’s release of strong U.S. economic data, traders said.
The Federal Open Market Committee, the Fed’s policy-setting meeting, is to meet Sept. 24.
Shinji Nohara, a foreign exchange trading official at Bank of Tokyo Mitsubishi, said the buying of dollars for yen was encouraged by expectations that Japan’s interest rates will remain unchanged for some time to come.
Traders said Japanese exporters’ sell orders at 110 yen were keeping the dollar from rising higher.
Meanwhile, the 225-issue Nikkei Stock Average gained 11.45 points closing 20,571.04. On Tuesday, the index had gained 357.32 points, or 1.77 percent, the third-largest single day gain this year.
But the Tokyo Stock Price Index of all issues listed on the first section was down 1.08 points to 1,559.15. It had climbed 17.65 points, or 1.14 percent, the previous day.
Yasufumi Ohigashi, deputy general manager of equity operations at Nomura Securities, said the cash market was moved by profit-taking in the futures market after Tuesday’s sharp rise.
An estimated 260 million shares changed hands on the first section, down from Tuesday’s 310 million. Declines outnumbered advances 561 to 466, with 201 issues unchanged.
The benchmark No. 182 10-year Japanese government bond closed at 100.64 yen, up from Tuesday’s close of 100.46 yen. Its yield fell to 2.910 percent from 2.935 percent.