The dollar strengthened to levels above ¥106 in Tokyo trading Wednesday, aided by buying stemming from Tokyo stock rebound.
At 5 p.m., the dollar stood at ¥106.06-07, up from ¥105.65-65 at the same time Tuesday. The euro was at $1.1874-1874, down from $1.1990-1991, and at ¥125.94-95, down from ¥126.68-69.
After dipping below ¥105.90, the dollar rose past ¥106.10 in midmorning trading thanks to buying by Japanese importers taking heart from the 225-issue Nikkei average’s spurt at the outset. But the dollar later attracted renewed selling and then got stuck within a narrow band.
“The dollar’s rebound against the euro following the single currency’s rise to top $1.2000 the previous day also prompted buying of the greenback vis-a-vis the yen,” a Japanese bank official said.
An asset manager pointed out that players were waiting for fresh incentives after pushing up the dollar to levels around ¥106.00, which roughly matches the current 25-day moving average.
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