The dollar climbed above ¥94.50 in Tokyo trading Wednesday, aided by hopes for the Bank of Japan’s further monetary easing steps.
At 5 p.m., the dollar stood at ¥94.70-72, up from ¥94.24-25 at the same time Tuesday. The euro was at $1.2823-2825, down from $1.2860-2864, and at ¥121.46-47, up from ¥121.17-25.
The dollar traded above ¥94.60 in early morning, carrying over its firmness vis-a-vis the yen from overnight trading abroad, where it attracted purchases on lingering hopes that the BOJ will adopt aggressive monetary easing steps at its next policy meeting April 3 and 4.
Such expectations grew after new BOJ Gov. Haruhiko Kuroda expressed on Tuesday his readiness to push through additional easing steps.
The U.S. currency advanced to near ¥94.90 in the early afternoon, buoyed by purchases before Japan’s fiscal 2012 ends this month, amid crosscurrents of term-end transactions, according to an official of a major Japanese bank.
The greenback was also supported by yen selling versus other currencies related to the launch of investment trust funds, an official of a brokerage said.
The dollar pared gains in the afternoon as month-end purchases subsided.
Overseas players are seen adjusting their positions ahead of Good Friday and the Monday after Easter and some of them closed their dollar-long positions when the greenback climbed close to the ¥95 line, a currency broker noted.
Many market participants forecast the dollar’s further advance versus the yen on hopes for the BOJ’s easing and on the New York stock market’s recent record-breaking advances reflecting investors’ appetite for riskier assets.