The dollar firmed to levels around ¥106.40 in Tokyo on Monday on the back of easing concerns over a global recession.
At 5 p.m., the dollar stood at ¥106.40-40, up from ¥106.16-20 at the same time Friday. The euro was at $1.1104-1104, up from $1.1085-1086, and at ¥118.15-15, up from ¥117.68-69.
The dollar moved above ¥106.40 in early trading, buoyed by buying inspired by media reports that the Chinese and German governments are considering drawing up stimulus measures.
A surge of the Nikkei 225 average soon after the start of trading also supported the U.S. currency.
The greenback, however, fell below ¥106.30 later in the morning as the Nikkei lost some of its gains. In the afternoon, the dollar traded in a narrow range mainly above that level due to a lack of fresh incentives.
“If Germany, which has sounded reluctant to carry out fiscal spending, actually moves for compiling stimulus measures, hopes could grow for Japan to take similar action,” an official of a bank-affiliated securities firm said.
Meanwhile, an official at an asset management firm said that “trading was slow, with market players waiting for a speech by U.S. Federal Reserve Chairman Jerome Powell on Friday” at a high-profile annual financial symposium in Jackson Hole, Wyoming.