The US dollar briefly hit a five-year high in the upper 115 yen range on Tuesday, the first trading day of 2022, as Tokyo stocks surged to take the Nikkei index to its highest level in addition to ‘a month.
At 3 p.m., the dollar hit 115.73-77 yen against 115.28-38 yen in New York on Monday at 5 p.m. Japanese financial markets were closed on Friday and Monday due to the year-end and New Year holidays.
Japanese Finance Minister Shunichi Suzuki rings the bell on the Tokyo Stock Exchange on January 4, 2022, in a ceremony to mark the first trading day of the year. (Kyodo)
The euro was listed at $ 1.1303-1307 and 130.81-90 yen against $ 1.1294-1304 and 130.26-36 yen in New York late Monday afternoon.
The 225-issue Nikkei Stock Average finished 510.08 points, or 1.77%, from Thursday at 29,301.79, its highest close since November 25. The largest Topix index of all issues in the first section of the Tokyo Stock Exchange finished at 37.89 points, or 1.90%. , greater than 2.030.22.
The winners were led by issues of shipping, transport equipment and insurance.
In addition to the rise in equities, the dollar rose against the yen amid rising expectations of an anticipated interest rate hike by the US Federal Reserve after an overnight rise in US Treasury yields, have said brokers.
“Treasury bond yields surged overnight, fueling expectations of a widening interest rate differential between the United States and Japan,” said Takuya Kanda, senior researcher at Gaitame. com Research Institute.
Japanese importers also bought the US currency for settlement, dealers said.
Kanda said the dollar will continue to be bought off as the US central bank is expected to raise interest rates several times this year.
A weaker yen allows exporters to earn more if they repatriate profits overseas and helps boost the competitiveness of Japanese-made products overseas, but this will likely lead to higher energy and fuel prices. food in the country, which will result in household squeeze.
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