The dollar strengthened to levels around ¥107.20 in Tokyo trading Monday.
At 5 p.m., the dollar stood at ¥107.19-19, up from ¥106.98-98 at the same time Friday. The euro was at $1.1243-1243, up from $1.1224-1224, and at ¥120.51-53, up from ¥120.06-11.
Following a rise above ¥107.30 in overseas trading Friday on demand for emergency liquidity driven by concerns about spikes in coronavirus cases, the dollar eased below ¥107.20 in Tokyo in early trading. But the greenback rose back against the yen in mid-morning trading, partly thanks to buying by Japanese importers.
Coming under renewed selling pressure induced by the Nikkei stock average’s somber moves, the dollar traded around ¥107.10 for a while in the afternoon. However, the U.S. currency was buoyed later by buying prompted by an upturn in U.S. stock index futures in off-hours trading.
The dollar-yen pair struggled for direction as they were both regarded as safe-haven currencies, traders said.
“But the dollar seems to have attracted emergency liquidity demand more than the yen did every time fears over a second coronavirus wave heightened,” said an official at a foreign-affiliated securities firm.
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