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.
In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.