The dollar firmed to levels around ¥107.60 in Tokyo trading Monday, aided by a robust advance on the Tokyo Stock Exchange.
At 5 p.m., the dollar stood at ¥107.59-59, up from ¥107.48-52 at the same time Friday. The euro was at $1.1296-1297, up from $1.1234-1234, and at ¥121.54-55, up from ¥120.74-76.
The dollar topped ¥107.70 in mid-morning trading on buying by Japanese importers for settlement purposes and by investors taking heart from the Nikkei stock average’s extended rally. But the rise prompted some selling in the afternoon. Position-squaring activities also contributed to the dollar’s weakening below ¥107.60.
“Dollar-buying triggered by the U.S. Congress’ extension of a small business relief program late last week did not seem to be powerful enough to push up the greenback above ¥108,” said an official at a bank-affiliated securities firm.
“Higher stock prices underpinned the dollar-yen pair, but concerns remained strong over a second wave of coronavirus infections,” a major Japanese bank official said.