The dollar rose above ¥108.90 in Tokyo trading Tuesday, supported by higher Japanese and Chinese shares.
At 5 p.m., the dollar stood at ¥108.93-93, up from ¥108.62-62 at the same time Monday. The euro was at $1.1050-1050, down from $1.1073-1074, and at ¥120.36-37, up from ¥120.29-30.
After moving around ¥108.60, the dollar gained ground on buying by investors who took heart from the Nikkei 225’s rebound as well as purchases by Japanese importers for settlement purposes.
Rises in Chinese shares also helped the greenback exceed ¥108.90 in the afternoon.
The Shanghai stock market’s recovery from the previous day’s sell-off, in particular, “suggested that market sentiment had not gone worse than expected,” an official at a foreign exchange margin trading service firm said.
“While getting used to negative news about the novel coronavirus, players have grown sensitive to positive developments such as the Chinese central bank’s emergency injection of massive liquidity,” said an official at a bank-affiliated securities firm.
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