The dollar recouped much of its early losses to trade around ¥113.70 in Tokyo trading late Friday, chiefly pushed up by a rebound in Tokyo stock prices.
At 5 p.m., the dollar stood at ¥113.72-73, up from ¥113.57-59 at the same time Thursday. The euro was at $1.1142-1144, up from $1.0967-0968, and at ¥126.75-76, up from ¥124.56-59.
In overseas trading overnight, the dollar topped ¥114.40 in line with its strength against the euro after the European Central Bank announced additional monetary easing steps.
But the dollar gave up gains after ECB President Mario Draghi said the central bank does not anticipate that “it will be necessary to reduce rates further.”
The remark by Draghi helped the euro to gain ground against the dollar and the yen.
After falling below ¥112.80 in early Tokyo trading, the greenback rose above ¥113.40 thanks to a wave of buying on dips.
“At levels below ¥113, the dollar drew strong purchases from Japanese investors,” an official of a currency brokerage firm said.
The dollar extended gains after Tokyo stocks turned higher in the afternoon. Attracting purchases against the euro, the U.S. currency topped ¥113.70 in late hours, market sources said.
After being hit by selling in overseas trading due to Draghi’s cautious comment on further rate cuts by the ECB, the dollar attracted buybacks in Tokyo trading on the back of higher crude oil and stock prices, the sources said.