The dollar was firmer above ¥105 in Tokyo on Thursday as investors moved to buy the U.S. currency for risk aversion although it gave up some of its gain in late trading.
At 5 p.m., the dollar stood at ¥105.30, up from 104.96 at the same time Wednesday. The euro was at $1.1667, down from $1.1694, and at ¥122.80, up from ¥122.70.
The dollar rose near ¥105.50 in the morning thanks to purchases from market players who grew risk-averse following on a plunge in U.S. stocks Wednesday and lower Japanese stock prices Thursday, as well as from Japanese importers.
After fluctuating around ¥105.40 amid a lack of fresh incentives, the greenback eased below ¥105.30 in late trading.
Sell orders increased when the dollar approached ¥105.50, an official of a Japanese bank said. Meanwhile, a foreign exchange broker said, “Market participants sold the dollar, apparently due to their disappointment at its failure to rise markedly.”
Market sources said that a fall in long-term U.S. Treasury bond yields in off-hours trading weighed on the dollar vis-a-vis the yen.