The dollar rose to around ¥107.30 in Tokyo trading Tuesday, after strengthening against the euro.
At 5 p.m., the dollar stood at ¥107.30, up from ¥107.16 at the same time Monday. The euro was at $1.1442, down from $1.1456, and at ¥122.82, up from ¥122.75.
The dollar fluctuated around ¥107.20 in the morning, sandwiched between position-squaring selling and buying for settlement purposes by Japanese importers.
In the afternoon, the greenback topped ¥107.30 after appreciating against the euro on media reports that the leaders of the European Union eventually struck a coronavirus recovery fund deal worth €750 billion after marathon talks.
With all existing buying incentives for the euro gone with the accord, investors moved to sell the single currency vis-a-vis the dollar, traders said.
Meanwhile, an official at a bank-affiliated securities firm said the currency market’s reaction to the agreement was weaker than expected.
“Dollar-yen players have already started squaring their positions ahead of Japan’s four-day weekend from Thursday,” another securities house official said.