Lifted by higher stock prices, the dollar rose to around ¥107.40 in Tokyo trading Tuesday before shedding gains.
At 5 p.m., the dollar stood at ¥107.15-16, up from ¥106.84-84 at the same time Monday. The euro was at $1.0979-0979, up from $1.0972-0972, and at ¥117.65-65, up from ¥117.23-24.
After rising overnight above ¥107.40 in overseas trading on renewed expectations for progress in U.S.-China trade talks starting Thursday, the dollar eased to close to ¥107.20 in early Tokyo trading.
But investors bought back the dollar against the yen in view of the Nikkei 225 average’s steep rebound at the opening and solid moves later.
In later afternoon trading, the dollar dropped from around ¥107.40 to levels below ¥107.20 on selling sparked by a harsh Chinese reaction to fresh U.S. sanctions against Chinese firms on alleged human rights abuse in the Xinjiang Uighur Autonomous Region, traders said.