The dollar rose to around ¥105 in Tokyo trading Tuesday, affected by buying against the Australian dollar.
At 5 p.m., the U.S. dollar stood at ¥104.98-98, up from ¥104.74-74 at the same time Monday. The euro was at $1.2069-2069, down from $1.2127-2127, and at ¥126.70-71, down from ¥127.02-03.
After fluctuating around ¥104.90 in early trading, the dollar eased to around ¥104.80, succumbing to selling pressure.
Buybacks then helped the U.S. currency return to around ¥104.90 later in the morning.
In the afternoon, the greenback fluctuated around ¥105, reflecting market players’ moves to sell the Australian dollar and buy the U.S. currency following the Reserve Bank of Australia’s decision to extend its current quantitative easing policy.
The U.S. dollar’s rise was also helped by higher U.S. long-term interest rates in off-hours trading.
“Speaking from a technical point of view, I wouldn’t be surprised if the dollar rises to around ¥105.50,” an official at a foreign exchange margin trading service firm said.
The dollar’s upside in the day’s trading, however, was limited as “market players were apparently reluctant to engage in active trading, as they were still unsure of whether the turmoil on the financial and commodity markets caused by speculative trading by individual investors will subside,” a currency broker said.
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