The dollar rose above ¥102.50 in Tokyo trading Tuesday, but its topside was heavy due to a wait-and-see sentiment reflecting a lack of fresh incentives in Japan. At 5 p.m., the dollar stood at ¥102.59-60, up from ¥102.46-47 at the same time on Monday. The euro was at $1.3350-3351, down from $1.3386-3386, and at ¥136.96-98, down from ¥137.15-18. The greenback climbed to as high as ¥102.65 in early trading following its overnight advance backed by rises in U.S. stocks and long-term interest rates reflecting better-than-expected U.S. homebuilder confidence data for August and receding geopolitical concerns over the situation in Ukraine. But dollar-yen trading became quiet later as there were few fresh clues on the Tokyo market. The U.S. long-term interest rates still remain low despite their overnight rise, an official at a foreign exchange margin trading service firm said, adding that the current rate levels are not high enough to trigger aggressive dollar purchases. “The U.S. rates, now around 2.4 percent, are unlikely to rise to 3.0 percent any time soon,� an official at a major securities house said. The Tokyo stock market’s advance failed to give substantial support to the dollar, a foreign exchange broker said. While a risk-on mood could increase on the back of recent stock price rises in and outside Japan, powerful incentives for the dollar are scarce, one source said, adding that players are expected to continue taking a wait-and-see stance and that the U.S. currency will likely remain top-heavy around ¥102.70 as a result. Meanwhile, another source said that the dollar is gradually gaining momentum as investor sentiment is improving. Still, an official at a major Japanese bank said that many investors are refraining from active trading prior to U.S. Federal Reserve Chairwoman Janet Yellen’s speech at an economic and financial symposium in Jackson Hole, Wyoming, on Friday.

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