The dollar was slightly firmer above ¥101.20 in Tokyo trading Wednesday, aided by buybacks that set in after currencies in emerging economies showed some resilience overnight.
At 5 p.m., the dollar was quoted at ¥101.21-26, up from ¥101.08-09 at the same time Tuesday. The euro stood at $1.3509-3510, down from $1.3524-3524, and at ¥136.75-76, up from ¥136.71-72.
In overnight trading abroad, Turkey’s lira and other currencies in emerging economies showed signs of stabilization, spurring currency market players to buy dollars, traders said.
The brighter mood continued into Tokyo trading early Wednesday, pushing the dollar to around ¥101.70, according to traders.
But the dollar cut its gains and reached levels around ¥101.20 by around noon due to increasing selling by Japanese exporters, traders said.
The greenback drifted around ¥101.50 for much of the afternoon but fell to around ¥101.20 again in late trading after European players joined market activities.
The Nikkei average staged a rally, but the dollar remained under pressure as the TSE trimmed its gains toward the close, traders said.
“Japanese and U.S. stocks rose, but that was only a technical rebound,” an official with a major Japanese bank said.
“We are not sure whether jitters over emerging markets will end” anytime soon, said an official for a foreign brokerage house.
The dollar-yen sector remains “unstable,” an official of a foreign exchange margin trading service firm said, adding that the dollar “is reacting more to negative factors than to positive ones.”