The dollar rose above ¥106.20 in Tokyo trading Thursday on the back of a growing risk-on mood.
At 5 p.m., the dollar stood at ¥106.21, up from ¥106.06 at the same time Wednesday. The euro was at $1.1817, down from $1.1874, and at ¥125.47, down from ¥125.94.
The dollar eased below ¥106.20 early in the morning due to a drop in U.S. long-term interest rates but attracted renewed buying sentiment after the 225-issue Nikkei average made a brisk start. In the afternoon the greenback topped ¥106.30 before meeting with some position-squaring selling.
“The dollar was bought against the yen as stock rises stimulated players’ risk appetite,” a think tank official said.
“But higher U.S. interest rates will be necessary for the dollar to gain further upward momentum,” a Japanese bank official said.