The dollar was higher at around ¥107.60 in late Tokyo trading on Wednesday, helped by safe-haven dollar purchases amid persistent economic uncertainties due to the spreading coronavirus outbreak.
At 5 p.m., the dollar stood at ¥107.60-60, up from ¥107.38-38 at the same time Tuesday. The euro was at $1.0855-0855, up from $1.0829-0829, and at ¥116.80-81, up from ¥116.29-36.
The dollar rose to levels close to ¥107.90 in midmorning trading, supported by real demand-backed dollar purchases, traders said.
The greenback turned top-heavy around the level and was pushed down below ¥107.80 around noon, due to a drop in the benchmark 225-issue Nikkei stock average, traders said.
The dollar fell to levels around ¥107.60 in the early afternoon and moved around that level later, pressured by selling on a rally, traders said.
“The dollar-yen rate was directionless as both currencies attracted safe-haven buying amid a plunge in crude oil prices,” a Japanese bank official said.
“A possible stock market sell-off triggered by crude oil price plunges could send the yen higher against the dollar,” an official of a life insurer warned.