The dollar rose above ¥106 in Tokyo trading Tuesday, supported by higher stock prices.
At 5 p.m., the dollar stood at ¥106.20, up from ¥105.85 at the same time Monday. The euro was at $1.1825, up from $1.1813, and at ¥125.58, up from ¥125.06.
The dollar was supported by advances in Japanese and U.S. stock prices on hopes for progress in novel coronavirus treatment and vaccine development, and a rise in U.S. interest rates on expectations for an economic recovery.
“The dollar often weakened despite higher stock prices in recent days, but today, the greenback was bought in response to rises on Wall Street and U.S. interest rates,” an official at a Japanese bank said.
The biggest trading incentive this week will be the Federal Reserve’s economic symposium in Jackson Hole, Wyoming, an official of a major bank said.
“Market attention will be focused on comments by Fed Chairman Jerome Powell about the U.S. central bank’s policy guidelines,” the official said.
Referring to concerns about Prime Minister Shinzo Abe’s health, an official at a foreign exchange margin trading service firm said that the government’s economic policy “will continue to pursue higher stocks and a lower yen.”