The dollar climbed to around ¥106.00 in Tokyo trading Thursday, attracting buying on the back of higher U.S. interest rates.
At 5 p.m., the dollar stood at ¥106.00, up from ¥105.56 at the same time Wednesday. The euro was at $1.2187, up from $1.2155, and at ¥129.19, up from ¥128.31.
The dollar strengthened to around ¥106.10 in the morning following a rise in U.S. long-term interest rates in off-hours trading.
The greenback was also aided by vigorous demand from Japanese importers for payment and the 225-issue Nikkei average’s rally.
But the dollar later met with selling to lock in gains.
The dollar-yen pair “has been reacting sensitively to U.S. interest rate fluctuations,” a currency broker said.
The broker also said the dollar is expected to remain firm against the yen for the time being because players are largely in a risk-on mood and tend to sell the safe-haven Japanese currency.
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