The dollar firmed above ¥109.30 in Tokyo trading Thursday on the back of unabated risk preference among investors.
At 5 p.m., the dollar stood at ¥109.37-37, up from ¥109.07-07 at the same time Thursday. The euro was at $1.348-1349, up from $1.200-1201, and at ¥124.11-13, up from ¥122.17-18.
Following an overnight dip on larger-than-expected U.S. jobless insurance claim numbers, the dollar recovered to top ¥109.20 in mid-morning trading thanks to buying by Japanese importers for settlement purposes. The greenback further gathered steam in the late afternoon.
“A risk-on mood remained intact,” a Japanese bank official said. “Italy and other South European economies became no longer worrisome after the European Union and the European Central Bank hammered out stimulus measures.”
“The dollar-yen pair was lifted by the Nikkei stock average’s advance,” another bank official said.