The dollar climbed above ¥107.70 in Tokyo on Tuesday, aided by growing risk appetite reflecting an overnight rise of U.S. equities.
At 5 p.m., the dollar stood at ¥107.72, up from ¥107.19 at the same time Monday. The euro was at $1.1222, down from $1.1243, and at ¥120.89, up from ¥120.51.
In New York on Monday, the dollar briefly topped ¥107.80 as the U.S. Dow Jones Industrial Average rebounded sharply thanks in part to the release of better-than-expected pending home sales data for May, traders said.
In early Tokyo trading Tuesday, the greenback fell below ¥107.60 due to selling on a rally.
The dollar spurted above ¥107.70 in midmorning trading, supported by buying linked to month- and quarter-end demand and purchases induced by a surge of Japan’s key 225-issue Nikkei average, market sources said.
The greenback gave up some of the gain in late trading, however, weighed by renewed selling.
“Dollar-buying lost steam when the currency rose close to ¥108,” an official of a Japanese bank said.
“Trading was directionless, with market players mainly adjusting positions at the end of the month,” another bank official said.