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The dollar rose above ¥107 in Tokyo trading Thursday, attracting demand for emergency liquidity amid growing fears of a second coronavirus wave.

At 5 p.m., the dollar stood at ¥107.10-11, up from ¥106.60-60 at the same time Wednesday. The euro was at $1.1234-1234, down from $1.1297-1298, and at ¥120.32-33, down from ¥120.42-45.

The dollar topped ¥107.20 in the morning by drawing purchases to keep sufficient liquidity in preparation for a credit crunch like the one seen at the beginning of the pandemic. Japanese importers’ buying for settlement purposes also contributed to the greenback’s advance against the yen. In the afternoon, the dollar was resold to some extent.

With the coronavirus showing signs of another outburst in the United States, “dollar buying for emergency liquidity outpaced safe-haven yen buying,” a think tank official said.

“Those who bought the yen against the dollar on SoftBank Group-linked speculation Wednesday moved to repurchase the U.S. currency to square their yen-long positions,” an official at a major Japanese securities firm said.