The dollar was firmer at around ¥105.50 in late Tokyo trading Tuesday on the continued climb of Japanese stock prices.
At 5 p.m., the dollar stood at ¥105.46, up from ¥105.17 at the same time Monday. The euro was at $1.2130, nearly unchanged from $1.2131, and at ¥127.94, up from ¥127.59.
The dollar gained on the rise of the 225-issue Nikkei average and of U.S. long-term interest rates.
However, the greenback became top-heavy in the afternoon. It “became prone to selling on a rally,” an official at a foreign exchange margin trading service firm said.
“Near-term traders gave up chasing a higher dollar when the currency rose above ¥105.60,” an official at a Japanese securities house said.
The yen came under pressure against the dollar amid growing risk appetite. But “the dollar was also being sold and will see its topside capped,” an official at a major Japanese bank said.
Market players are keeping a close watch on U.S. stock prices after U.S. markets were closed Monday for the Presidents’ Day holiday as well as U.S. long-term interest rates, dealers said.
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