The dollar was firmer above ¥108.70 in late Tokyo trading Wednesday amid growing expectations for an economic recovery in and outside Japan.
At 5 p.m., the dollar stood at ¥108.74-74, up from ¥107.74-82 at the same time Tuesday. The euro was at $1.1216-1216, up from $1.1127-1128, and at ¥121.96-96, up from ¥119.93-94.
The dollar fell below ¥108.50 briefly as the benchmark 225-issue Nikkei stock average trimmed gains after a sharply higher start, but the currency regained momentum in late trading.
"Dollar-yen movements had been lackluster compared with a rally in stock rises amid a growing risk-on mood, but they suddenly turned buoyant in overseas trading the previous day," an asset management firm official said.
In overseas trading on Tuesday, "stop-loss dollar-buying for yen gathered momentum after the dollar rose above ¥108," an official at a foreign exchange margin trading service company said.
"Dollar buying was triggered after the currency passed its 200-day moving average above ¥108.30," an official of a Japanese securities house said.