The dollar rose above ¥111 in Tokyo trading Tuesday, supported by higher stock prices in Japan and the United States.
At 5 p.m., the dollar stood at ¥111.07-08, up from ¥110.40-41 at the same time Monday. The euro was at $1.1745-1745, down from $1.1768-1770, and at ¥130.46-46, up from ¥129.93-94.
The dollar rose to as high as around ¥111.20 in the afternoon before falling back slightly due to euro buying versus the dollar and profit-taking, traders said.
The dollar attracted purchases as recent data gave an impression that “the U.S. economy is strong and unlikely to experience a downturn anytime soon,” a think tank official said.
Growing risk appetite in line with a rise in U.S. share prices triggered dollar purchases against the yen, the official said.
A rise in Japanese stock prices also supported the dollar, market sources said. “The dollar remains firm, though the pace of its advance is slow, on the back of stock market firmness in Japan,” a currency broker said.
Concern about the yen’s possible rise against the dollar is receding because there is no fresh news about U.S. trade policy, an official at a major life insurance firm said.