The dollar rose above ¥99.60 in Tokyo trading Tuesday on the back of robust gains in the stock market.
At 5 p.m., the dollar was quoted at ¥99.66-68, up from ¥98.96-99.00 at the same time Monday. The euro stood at $1.3386-3387, up from $1.3373-3375, and at ¥133.42-44, up from ¥132.35-37.
The dollar moved narrowly around ¥99.20 in early trading, after gaining some ground in European trading overnight in line with buybacks of the euro versus the yen.
Toward noon, the U.S. currency climbed above ¥99.50 for the first time since Sept. 20, as buying picked up momentum after the Nikkei average gained further ground.
“After getting support from speculative yen selling prompted by upbeat stocks, the dollar struggled to extend gains at levels above ¥99.50, apparently due to sizable sell orders placed by Japanese exporters and short-term players,” a currency broker said.
The dollar still kept its firm tone against the yen in the afternoon as the Nikkei headed higher to rise more than 2 percent.
Renewed purchases gave an additional boost to the dollar versus the yen after European players participated in late hours.
While stronger than expected U.S. employment data released Friday continued to help underpin the dollar’s downside versus the yen, the market lacked fresh trading incentives.
Market players are awaiting a speech by U.S. Federal Reserve Chairman Ben Bernanke scheduled for Wednesday and an appearance Thursday by Fed Vice Chairwoman Janet Yellen before the Senate Banking Committee.
Yellen has been nominated by President Barack Obama as successor to Bernanke.