The dollar rose Tuesday to around ¥108.50 before meeting with late selling in Tokyo trading.
At 5 p.m., the dollar stood at ¥108.33-33, up from ¥108.10-10 at the same time Monday. The euro was at $1.1174-1174, up from $1.1164-1164, and at ¥121.03-03, up from ¥120.69-69.
The dollar climbed to around ¥108.50 in overnight trading. But selling pressure increased at the levels to send the U.S. currency back into a range sandwiching ¥108.30 in the early morning.
The greenback gradually recouped the lost ground against the yen, thanks to buying induced by the Nikkei 225 stock average’s sharp rebound. But the dollar was hit by renewed selling in the late afternoon as comments by Iranian Foreign Minister Mohammad Javad Zarif refueled concern over an escalation of tensions between the United States and Iran.
An asset manager forecast that the dollar-yen pair would show wild swings later this month.
“Players have been sensitive to headlines about the U.S.-Iran conflict,” an official at a foreign exchange margin trading service firm pointed out.