The dollar gained ground and rose above ¥101.70 in Tokyo trading Tuesday, drawing purchases thanks chiefly to the solid performance of the stock market.
At 5 p.m., the dollar stood at ¥101.79-80, up from ¥101.34-36 at the same time Monday. The euro was at $1.3752-3753, down from $1.3770-3770, and at ¥139.98-140.02, up from ¥139.55-56.
After moving below ¥101.50 in early trading, the dollar attracted buying and rose above ¥101.70 at one point as Tokyo stocks wiped out early losses, market sources said.
The U.S. unit briefly came under selling pressures later but resisted falling further, helped by the firmness of Tokyo stocks in the afternoon.
The dollar was also supported by improvements in U.S. economic data released overnight, including personal consumption spending in January and the Institute for Supply Management’s manufacturing index for February, the sources said.
Still, the upside of the dollar was capped by worries over the course of the crisis in Ukraine.
“Amid uncertainties about the Ukrainian situation, investors found it difficult to step up dollar purchases,” an official at a foreign exchange brokerage said.
Due to the lingering tension in Ukraine, investors became risk-averse, an official at a foreign financial institution said.
The dollar briefly surged to near ¥102 after European players joined trading in late hours.
As the euro attracted demand on news that Russian President Vladimir Putin has ordered troops engaged in a military drill to return to their bases, the dollar also drew purchases against the yen, one market source said.