The dollar rose above ¥109 for the first time in about two months in Tokyo trading Thursday amid growing risk appetite among investors.
At 5 p.m., the dollar stood at ¥109.07-07, up from ¥108.74-74 at the same time Wednesday. The euro was at $1.200-1201, down from $1.1216-1216, and at ¥122.17-18, up from ¥121.96-96.
The dollar topped ¥109 in the early morning after the release of U.S. economic indicators that were stronger than expected.
The greenback fell below ¥108.90 toward noon after hit by selling by Japanese exporters. But it later rose back above the 109 threshold on buying spurred by a rebound in the Nikkei stock average following its descent in the morning.
Enhanced liquidity supplied by central banks to shield financial markets from the turmoil created by the coronavirus pandemic has helped create a risk-on mood, an official at a foreign-exchange margin trading firm said.
Investors are believed to have stepped up dollar buying in anticipation of a quantitative easing decision that was expected at the European Central Bank’s policy-setting meeting later Thursday, a trust bank official said.