LOC11:19
08:19 GMT
Tokyo stocks
TOKYO, May 28 (KUNA) -- The US dollar rose to the lower 124 yen range on Thursday in Tokyo, the highest in 12 and a half years following the rise in New York overnight.
The greenback fetched JPY 123.61-64 compared with JPY 123.62-72 in New York and JPY 122.98-123.01 in Tokyo at 5 p.m. Wednesday. The dollar climbed to JPY 124.20 at one point, its highest level since December 2002.
In New York overnight, the dollar appreciated as high as JPY 124.09 against the Japanese currency, the strongest since July 2007 on growing speculation that US Federal Reserve may announce an interest rate increase by the end of this year.
Federal Reserve chair Janet Yellen said on May 22 that she expects the American central bank to raise interest rates this year, citing recovery in the US economy.
On Wednesday, Japan's Finance Minister Taro Aso expressed concern about recent sharp foreign exchange movements, saying, "In general, rapid currency fluctuations are undesirable." The dollar fell following his remarks but rose again.
The weak yen supports exports by making Japanese products more competitive overseas and increase the value of repatriated overseas earning.
The yen's depreciation boosted buy orders for export-related shares in the Japanese stock markets, with a key Tokyo index rising for the 10th trading day for the first time in over 27 years. The Nikkei 225 Stock Average on the Tokyo Stock Exchange (TSE) gained 78.88 points, or 0.39 percent, from Wednesday to 20,551.46, the highest close since April 12, 2000.
The broader Tokyo Stock Price Index, which includes all First Section issues on the TSE, advanced 11.43 points, or 0.69 percent, to 1,672.76. (end)
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