The dollar turned sharply higher in Tokyo trading Tuesday amid growing hopes that the United States will implement large-scale economic measures to offset damage from the coronavirus, exceeding ¥105 at one point.
At 5 p.m., the dollar stood at ¥103.84-85, still up more than ¥1.5 from ¥102.26-28 at the same time Monday. The euro was at $1.1382-1382, down from $1.1432-1433, and at ¥118.19-21, up from ¥116.98-99.
The dollar breached ¥105 around midafternoon in line with the Nikkei 225 stock average’s rebound.
The greenback attracted buybacks after slipping through ¥101.20 in overseas trading hours, and accelerated its upswing against the yen in Tokyo.
Investors increasingly took heart from U.S. President Donald Trump’s remarks showing his readiness to carry out a payroll tax cut and other measures aimed at preventing the raging coronavirus from hurting the economy, traders said.
In late afternoon trading, however, the dollar came under renewed selling pressure amid persistent fears over the coronavirus outbreak.
“The currency market will remain stormy until an end to the global virus spread comes into sight,” a think tank official said.