The dollar was firmer above ¥111 in late Tokyo trading Tuesday, drawing support from waves of buybacks.
At 5 p.m., the dollar stood at ¥111.10-10, up from ¥110.18-19 at the same time Monday. The euro was at $1.1420-1422, up from $1.1373-1374, and at ¥126.87-91, up from ¥125.33-33.
The dollar firmed around ¥110.70 in overnight trading abroad on the back of a halt to the Turkish lira’s tumble thanks to the announcement by the country’s central bank of its decision to “provide all the liquidity” banks need.
In Tokyo on Tuesday, the greenback moved around ¥110.60-70 in early trading and zoomed above ¥110.80 in the midmorning amid a surge in the Nikkei 225 stock average and higher long-term U.S. Treasury bond yields in off-hours trading.
The U.S. currency continued rising in the afternoon and topped ¥111 in late trading.
“An excessive risk-off mood is receding as selling of the Turkish lira has run its course,” a foreign exchange brokerage official said.
Behind the lira’s recent tumble was the United States’ hard-line stance against Turkey, including trade sanctions, over the issue of a U.S. pastor being held in the country.
Noting that the administration of U.S. President Donald Trump is also considering imposing sanctions on Russia next week, an official of a major Japanese bank said, “Currency market players’ risk appetite won’t increase at a time when the U.S. trade policy is causing diplomatic friction.”