Higher stock prices gave the dollar a boost beyond ¥107.80 in Tokyo trading Thursday.
At 5 p.m., the dollar stood at ¥107.81-84, up from ¥107.52-52 at the same time Wednesday. The euro was at $1.1004-1004, up from $1.0965-0965, and at ¥118.64-65, up from ¥117.90-90.
After hovering in a range around ¥107.70 in overnight trading, the dollar climbed close to ¥107.90 in the morning thanks to buying spurred by a surge in the Nikkei stock average, traders said.
In the afternoon, the greenback turned top-heavy as investors were increasingly worried about an escalation of U.S.-China tensions ahead of a plan later in the day by China’s National People’s Congress to approve Beijing’s proposal to impose national security legislation on Hong Kong, they added.
“Behind today’s growth in investor risk appetite was the European Union’s presentation of a coronavirus recovery package,” an official at a bank-affiliated securities firm said.