The dollar strengthened to around ¥107.40 on a rise in U.S. long-term interest rates Wednesday.
At 5 p.m., the dollar stood at ¥107.42-43, up from ¥106.87-88 at the same time Tuesday. The euro was at $1.0970-0970, down from $1.1137-1138, and at ¥117.88-89, down from ¥119.03-05.
The dollar moved on a firm note around ¥107.50 in the morning, supported by a rise in the Nikkei stock average.
The U.S. currency sank below ¥106.80 in the afternoon following the Nikkei’s downturn and a drop in U.S. long-term interest rates in off-hours trading. But the greenback went up in late trading on buybacks prompted by the interest rates’ rebound, traders said.
The currency market has shown no sign of regaining stability amid the global coronavirus crisis, analysts said.
“Concerns over a financial squeeze will not be gone until liquidity supply measures announced by the Federal Reserve, the Bank of Japan and other central banks in major economies turn out to be effective,” a trust bank official said.
A commercial bank official pointed out that the ongoing turmoil in the financial markets will not end unless the United States stops the spread of the novel coronavirus in the world’s biggest economy.