September 28, 2016 – The dollar climbed to levels near ¥100.80 in Tokyo trading today, on the back of euro selling against the U.S. unit.
At 5 p.m., the dollar stood at ¥100.74-76, up from ¥100.53-54 at the same time yesterday. The euro was at $1.1191-1193, down from $1.1248-1248, and at ¥112.76-77, down from ¥113.08-09.
“Management woes at Deutsche Bank AG were among factors providing incentives to sell the euro,” an official at a foreign exchange brokerage house said.
The dollar eased to near ¥100.20 in the early morning, partly dampened by an overnight drop in U.S. long-term interest rates due to increased safe-haven appeal of U.S. Treasuries amid concerns over the Deutsche Bank woes, traders said.
But the greenback soon rose to levels around ¥100.60, backed by purchases from Japanese importers for month-end settlements. It extended gains in late trading.
Still, a further rise of the dollar was held in check, with investor sentiment pressured by the Deutsche Bank problem, as well as recent oil price falls, traders said.
Dollar-yen rate movements were generally directionless due to a dearth of major trading incentives following recent key events including Monday’s U.S. presidential debate between Hillary Clinton and Donald Trump.
U.S. Federal Reserve Chair Janet Yellen is set to give congressional testimony later today. But the testimony, not themed on monetary policy, is unlikely to provide incentives for currency traders, said an official at a currency margin trading service provider.