The dollar briefly exceeded ¥109 in seesaw Tokyo trading Tuesday, backed in part by hopes for a successful end to ongoing U.S.-China trade talks.
At 5 p.m., the dollar stood at ¥108.96-97, up from ¥108.17-17 at the same time Monday. The euro was at $1.1443-1444, up from $1.1436-1437, and at ¥124.70-71, up from ¥123.72-72.
The dollar mostly traded around ¥108.60 in the early morning, carrying over its strength from overseas trading overnight. But it dropped around ¥108.50 after nearing ¥108.70 on buying by Japanese importers in midmorning.
The U.S. currency recovered close to ¥109 in the early afternoon but was pushed back below ¥108.80 on renewed selling. The greenback broke the ¥109 line later on position adjustment purchases before losing some of the gains.
The dollar was backed by optimistic remarks by U.S. Commerce Secretary Wilbur Ross about the outcome of the trade talks as well as the Nikkei 225’s two-day rally, traders said.
But there was no sustained dollar buying amid growing prospects for a narrower interest rate gap between Japan and the United States, a think tank official said.