The dollar maintained strength at around ¥104.40 in Tokyo trading Friday despite increased selling pressure.
At 5 p.m., the dollar stood at ¥104.36, up from ¥104.28 at the same time Thursday. The euro was at $1.1676, down from $1.1735, and at ¥121.87, down from ¥122.38.
After fluctuating in the ¥104.60 range early in the morning, the dollar gradually lost ground until early afternoon. In the middle of afternoon trading, the greenback hit levels close to ¥104.10. But it then shed losses as the drop attracted buybacks, traders said.
Dollar selling against the yen gathered steam after the euro, which suffered a sell-off the previous day, rebounded against the U.S. currency. Plunges in the Nikkei stock average and in U.S. stock index futures in off-hours trading amid a risk-off mood also weighed down the dollar-yen pair.
“Sentiment for the euro has deteriorated due to the recent spike in the number of novel coronavirus cases in Europe, making the dollar and the yen look attractive as safe-haven currencies,” a currency broker said.
Although concerns over the coronavirus resurgence in the United States worked negatively for the dollar, “active selling was held in check ahead of the weekend and Tuesday’s U.S. presidential election,” an official at a foreign exchange margin trading service firm said.
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