The dollar staged a modest rally to around ¥119.50 in Tokyo trading on Tuesday, supported by repurchases following the previous day’s slump below ¥119.
At 5 p.m., the dollar stood at ¥119.42-43, up from ¥118.97-98 at the same time Monday. The euro was at $1.0808-0809, down from $1.0912-0913, and at ¥129.08-09, down from ¥129.82-83.
The greenback hovered below ¥119.50 in the early morning after a rebound overseas on buybacks for position adjustment. But it sagged as low as around ¥119.10 by midmorning, weighed by the Tokyo stock market sluggish start following the previous day’s rout.
The dollar took an upturn and climbed as high as around ¥119.70 around noon, as the Nikkei jumped into positive territory toward the morning close in line with the Shanghai stock market’s brief rally.
In the afternoon, the dollar failed to extend gains against the yen, due to the Nikkei’s fallback.
In the wake of the previous day’s tumble, position-adjustment moves prevailed on Tuesday, an official at a major Japanese bank said, adding that “the dollar’s topside will continue to be capped” in the absence of major buying incentives.
Meanwhile, an official at a currency margin trading service provider said the dollar is likely to attract buying later this week on hopes for U.S. jobs data due out Friday, if Chinese stocks rebound.