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Tokyo forex summary: Dollar trades near 159 yen as intervention concerns cap gains
The dollar traded at 159.01 yen at 3:00 p.m. in the Tokyo foreign exchange market on May 19, up about 9 sen from 5:00 p.m. the previous day. The euro stood at 185.12 yen, up about 27 sen, while trading at 1.1642 dollars against the greenback, up about 0.0011 dollars.
Japan's Cabinet Office released gross domestic product (GDP) data for the January-March quarter on May 19, showing an annualized 2.1% expansion in seasonally adjusted real terms. The economy grew for a second consecutive quarter, beating market forecasts. While the data supported views of an early Bank of Japan rate hike, the yen saw limited buying. Morning dollar demand from importers supported the dollar-yen pair, but gains were capped above the 159 yen threshold as concerns over potential intervention by Japanese authorities intensified. The yen also faced pressure from concerns over fiscal deterioration amid speculation that the government is moving to compile a supplementary budget to counter rising crude oil prices. Trading turned subdued in the afternoon session due to a lack of fresh catalysts.
Source: MINKABU PRESS
*Translated by generative AI. Click here for the original article.
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