The dollar was marginally higher above ¥101.60 in Tokyo trading Tuesday amid easing tensions over the crisis in Ukraine, but its topside was limited ahead of a speech by Russian President Vladimir Putin later in the day.
At 5 p.m., the dollar was quoted at ¥101.64-65, up from ¥101.55-59 at the same time Monday. The euro was at $1.3914-3915, up from $1.3881-3883, and at ¥141.44-47, up from ¥140.98-140.99.
The greenback climbed to around ¥101.90 in early trading on buybacks as tensions over the Ukrainian crisis eased somewhat. U.S. and European stock markets broadly showed firmness overnight after Sunday’s referendum in Crimea caused no major turmoil.
“Risk off” sentiment receded as sanctions against Russia imposed by the United States and Europe following the referendum were within the market’s expectations. In the referendum, which followed Russia’s military intervention in Crimea, residents overwhelmingly voted for the region to secede from Ukraine and join Russia.
The U.S. currency met with position-adjusting sales later in Tokyo trading after the Nikkei average pared early gains.
In the afternoon, market players took to the sidelines ahead of Putin’s speech.
The dollar’s upside was capped around ¥101.60 when European players joined transactions in late hours.
“Currency players were cautious about chasing higher ground for the dollar in view of the risk of a deterioration in Russia’s standoff with the United States and Europe, depending on what Putin will say in his speech,” a foreign exchange broker said.