Dollar rises into 109 yen range in Tokyo

The US dollar rose into the 109 yen range Friday in Tokyo, as dollar buying accelerated after the euro fell below the psychologically important 1.20-dollar line amid rising speculation of a rate cut by the European Central Bank.

At 5 p.m. (0800 GMT), the dollar was quoted at 109.21-24 yen against Thursday's 5 p.m. quotes of 108.87-97 yen in New York and 108.74-76 yen in Tokyo.

It moved between 108.89 yen and 109.24 yen during the day, trading most frequently at 108.97 yen.

At 5 p.m., the euro was quoted at 1.2056-2059 dollar and 131.69- 73 yen, compared with 1.2034-2044 dollar and 131.11-21 yen at 5 p. m. Thursday in New York.

The dollar was stuck in a narrow range around the 109 yen line in the morning, but after the euro fell to 1.1982 dollar, the US currency started moving higher to hit the day's high in the late afternoon. The euro quickly recovered to the key 1.20 dollar due to short covering.

Dealers said the dollar-yen exchange rate lacks a clear trend as the market has been focusing on the euro, which has been battered amid concerns over Europe's economic outlook, political uncertainties and growing speculation over interest-rate cuts.

Source: Xinhua