The dollar slightly strengthened to around ¥105.80 in late Tokyo trading Monday.
At 5 p.m., the dollar stood at ¥105.80, up from ¥105.60 at the same time Friday. The euro was at $1.2110, almost unchanged from $1.2109, and at ¥128.12, up from ¥127.87.
The dollar climbed past ¥105.70 in midmorning trading on buying induced by a rise in U.S. long-term interest rates in off-hours trading. But the greenback eased back following a drop in U.S. stock index futures.
After going sideways with players halting active trading ahead of U.S. Federal Reserve Chairman Jerome Powell’s congressional testimony starting Tuesday, the dollar gradually regained strength in late trading in the wake of the U.S. 10-year interest rate’s ascent toward 1.4%, traders said.
“The dollar-yen pair has become top-heavy to some extent amid growing caution over higher U.S. interest rates, although the yen has fallen on crosses,” a trust bank official said.
“We’re waiting to see if the Fed chief will make dovish or hawkish comments at a time when stocks, interest rates and cryptocurrencies are upbeat,” an official at a foreign exchange margin trading service firm said.
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