Dollar holds firm in Asia after topping 100 yen

TOKYO: The dollar held firm in Asia on Wednesday after breaking the psychologically important 100 yen mark for the first time in nearly a month.

The unit changed hands at 100.66 yen in afternoon Tokyo trade, almost flat from late Tuesday in New York, where it rose past the 100 yen mark for the first time since early June.

The greenback's strength came as solid US economic data bolstered a chance that the Federal Reserve will taper its bond-buying programme, a move likely to send the dollar higher.

In other currency trading, the euro also moved narrowly, fetching $1.2971 and 130.59 yen against $1.2978 and 130.60 yen in US deals.

Investors are focussing on a string of important US economic indicators later Wednesday as well as Friday's non-farm payrolls data, said Daisaku Ueno, senior forex strategist at Mitsubishi UFJ Morgan Stanley.

"The dollar was broadly stronger on expectations of the Fed's tapering of its bond-buying programme," he said, adding that whether the currency would be able to stay above 100 yen would depend on upcoming US data.

Campaigning for Japan's July 21 upper-house elections officially kicks off Thursday.