The dollar rose above ¥106.80 on buybacks in Tokyo trading Tuesday.
At 5 p.m., the dollar stood at ¥106.87-88, up from ¥106.59-59 at the same time Monday. The euro was at $1.1137-1138, down from $1.1176-1176, and at ¥119.03-05, down from ¥119.12-13.
After topping ¥106.00 in the early morning, the dollar ascended to levels above ¥107.10 in midmorning trading on repurchases prompted by rises in Tokyo stocks and U.S. stock index futures in off-hours trading. Higher U.S. long-term interest rates and real demand-backed buying by Japanese importers also pushed up the dollar, traders said.
Following a dip to around ¥106.20, the greenback crept up in the afternoon on repurchases.
“Safe-haven buying has helped prevent the dollar from falling much against the yen despite a stock sell-off” amid mounting fears over a coronavirus pandemic-caused global economic slump, a think tank official said.
Meanwhile, an official at a foreign exchange margin trading service firm pointed out that speculative transactions by short-term players have added to the dollar-yen volatility.
