The dollar was firmer around ¥108.10 in late trading in Tokyo on Tuesday, supported by rises in Japanese, Chinese and Hong Kong stock prices.
At 5 p.m., the dollar stood at ¥108.10-10, up from ¥107.85-86 at the same time on Monday. The euro was at $1.1192-1193, down from $1.1219-1219, and at ¥121.00-00, compared with ¥121.01-02.
A rise in U.S. long-term interest rates also supported the dollar’s rise, traders said.
Traders said the dollar was also driven higher by U.S. President Donald Trump’s agreement to make timely decisions on requests by U.S. firms to sell their products to Chinese telecommunications giant Huawei Technologies Co.
News of Trump’s agreement to ease the ban on sales to Huawei “provided an incentive to buy the dollar by raising hopes for progress in U.S.-China trade talks,” an asset management firm official said.
“Risk appetite grew on expectations for monetary easing measures” in Europe, Japan and the United States, an official of a Japanese securities firm said.
The European Central Bank is scheduled to discuss monetary policy on Thursday, while policy meetings of the Bank of Japan and the U.S. Federal Reserve are set for next week.