TOKYO (Kyodo) — The US dollar was firm in the lower 155 yen range in Tokyo early Thursday after hitting a new 34-year high overnight, as solid US economic data reinforced expectations that the Federal Reserve will keep interest rates elevated for a while .
The dollar hit 155.37 yen in New York, topping the psychologically important 155 yen line, despite wariness over a yen-buying intervention by Japanese authorities.
Investors have been selling the yen for the dollar amid the wide interest rate differential between Japan and the United States on receding expectations that the Fed will start cutting interest rates soon due to persisting inflation.
At 9 am, the dollar fetched 155.27-28 yen compared with 155.28-38 yen in New York and 154.89-91 yen in Tokyo at 5 pm Wednesday.
The euro was quoted at $1.0700-0701 and 166.14-17 yen against $1.0693-0703 and 166.13-23 yen in New York and $1.0687-0689 and 165.54-58 yen in Tokyo late Wednesday afternoon.
Stocks opened lower, with investors locking in gains following the previous day’s sharp rises amid a cautious mood as the Bank of Japan is set to begin its two-day policy later in the day.
In the first 15 minutes of trading, the 225-issue Nikkei Stock Average fell 475.81 points, or 1.24 percent, from Wednesday to 37,984.27. The broader Topix index was down 20.92 points, or 0.77 percent, at 2,689.81.
On the top-tier Prime Market, decliners were led by mining, insurance and precision instrument issues.
