The dollar topped ¥117 in Tokyo trading on Monday, lifted by a rebound in Tokyo stock prices.
At 5 p.m., the dollar stood at ¥117.31-31, up from ¥116.81-81 at the same time Friday. The euro was at $1.1137-1137, down from $1.1194-1194, and at ¥130.65-66, down from ¥130.76-77.
After moving around ¥116.80 to ¥116.90 in early trading, the dollar rose above ¥117 thanks to buybacks, as Tokyo stocks cut their losses following a weak start that reflected falls in European and U.S. share prices late last week.
Although the dollar briefly came under selling pressure, the U.S. currency attracted renewed demand in the afternoon because Tokyo stocks turned higher and remained strong until the day’s close.
“Spurred by the solid performance of Tokyo stocks, players moved to buy back the dollar,” an official at a foreign exchange margin trading service firm said.
The dollar-yen pair “only followed moves of the stock prices, and the currency market had no specific trading incentives,” a foreign exchange market broker said.
After rising near ¥117.50 however, the dollar was hit by selling in late hours.
“Unless concerns over the Chinese economy and crude oil prices are eliminated, the dollar is unlikely to head for an upward trend in full swing,” a think tank official said.