The dollar rose to around ¥109.30 in Tokyo trading Thursday, supported by easing U.S.-Iran tensions.
At 5 p.m., the dollar stood at ¥109.34, up from ¥108.41 at the same time Wednesday. The euro was at $1.1114-1117, down from $1.1152, and at ¥121.54-55, up from ¥120.90-91.
The dollar remained strong versus the yen throughout Thursday in Tokyo after rising in overseas trading Wednesday thanks to U.S. President Donald Trump’s remark denying that his country will take further military actions against Iran.
“A sense of relief spread” throughout the foreign exchange market following the remark, a currency broker said.
Other dollar-positive factors included purchases from Japanese importers and a sharp rise in Tokyo stocks, according to market sources.
The dollar-yen pair rebounded markedly because the market had factored in the risks associated with the Middle East tensions too much, said an official at a foreign exchange margin trading service firm.
But a trust bank official warned, “The dollar may still fall as wariness persists.”