The U.S. dollar remained firm in the upper 160 yen range early Thursday in Tokyo after climbing to its highest level in over 37 years on expectations the interest rate differential between Japan and the United States will remain wide.
The dollar rose as high as 160.88 yen in New York, surpassing 160.24 yen hit on April 29, a level that likely prompted Japan to intervene by buying the yen for the U.S. currency.
The euro also climbed against the yen overnight, hitting 171.79 yen, its highest level since the European currency was introduced in 1999.
At 9 a.m., the dollar fetched 160.63-64 yen compared with 160.78-88 yen in New York and 159.89-91 yen in Tokyo at 5 p.m. Wednesday.
The euro was quoted at $1.0678-0682 and 171.52-60 yen against $1.0675-0685 and 171.64-74 yen in New York and $1.0693-0695 and 170.98-171.02 yen in Tokyo late Wednesday afternoon.
Stocks opened lower, as investors locked in gains a day after the Nikkei index hit its highest level in over two months.
In the first 15 minutes of trading, the 225-issue Nikkei Stock Average fell 308.10 points, or 0.78 percent, from Wednesday to 39,358.97. The broader Topix index was down 8.71 points, or 0.31 percent, at 2,794.24.
On the top-tier Prime Market, decliners were led by mining, rubber product and pharmaceutical issues.
