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The dollar went up to around ¥104.30 in Tokyo trading Thursday, attracting demand as a key currency amid a growing risk-off mood.

At 5 p.m., the dollar stood at ¥104.31, up from ¥103.67 at the same time Wednesday. The euro was at $1.2093, down from $1.2153, and at ¥126.14, up from ¥126.01.

On the back of stock falls in the United States and Japan, risk appetite receded to make the dollar’s high liquidity as a reserve currency attractive. The U.S. currency rose above ¥104.30 by the midmorning also thanks to buying by Japanese importers for settlement purposes.

After showing some sluggishness with participants taking to the sidelines to see U.S. gross domestic product data to be released later on Thursday, the dollar strengthened to some extent in late afternoon trading.

The greenback attracted renewed buying sentiment against the yen following its strengthening against the euro and oil currencies, traders said.

A further drop in the U.S. stock market is expected to make the dollar stronger vis-a-vis the yen, some other traders noted.

But a Japanese bank official said, “The dollar may struggle to go higher even if stocks fall further, because a stock sell-off will also push up demand for the yen as a safe-haven currency.”

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