The dollar pared earlier losses to retake ¥105.80 in Tokyo trading Monday.
At 5 p.m., the dollar stood at ¥105.81, down from ¥106.06 at the same time Friday. The euro was at $1.1893, up from $1.1891, and at ¥125.84, down from ¥126.12.
After drifting around ¥105.30 over the weekend, the dollar rose close to ¥105.80 early on Monday morning on media reports that Chief Cabinet Secretary Yoshihide Suga showed willingness to succeed Shinzo Abe as president of the ruling Liberal Democratic Party and, thus, Japan’s prime minister.
The dollar dipped below ¥105.40 temporarily in midmorning trading due partly to selling by Japanese exporters. But the greenback attracted renewed purchases as the Nikkei stock average exhibited solid performance. In late trading, the dollar gained further ground.
“If Suga becomes prime minister, the right-hand man to Abe will certainly keep the Abenomics reflationary policy unchanged, a development that works in favor of the dollar against the yen,” said an official of a major securities firm.
Meanwhile, another brokerage firm official pointed out that lingering political uncertainties in Japan continued to put pressure on the dollar-yen pair.
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