The dollar rose above ¥107.60 in Tokyo trading Tuesday, aided by position-adjustment buying.
At 5 p.m., the dollar stood at ¥107.63, up from ¥107.59 at the same time Monday. The euro was at $1.1285, down from $1.1296, and at ¥121.46, down from ¥121.54.
The dollar slipped through ¥107.30 in the morning along with a drop in the 225-issue Nikkei average but resisted falling further thanks to buybacks. After going sideways at around ¥107.40 until midafternoon, the U.S. currency went up to top ¥107.60 on buying to cut yen-long positions amid a dearth of fresh trade incentives.
“Position-adjustment activities were dominant,” an asset manager said.
The greenback rose against the yen in overseas trading the previous day on buying triggered by the stronger-than-expected nonmanufacturing index for June released by the Institute for Supply Management.
In Tokyo, however, players grew skeptical about actual nonmanufacturing sales recovery, something that the sentiment-based survey cannot depict, an official at a foreign exchange margin trading service firm noted.
In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.