The dollar climbed to around ¥106.60 in Tokyo trading Monday, in response to a rebound in U.S. long-term interest rates and real demand.
At 5 p.m., the dollar stood at ¥106.60, up from ¥106.08 at the same time Friday. The euro was at $1.2076, down from $1.2134, and at ¥128.73, almost unchanged from ¥128.72.
The dollar slipped through ¥106.40 on a moderate fall in U.S. long-term interest rates and selling by Japanese exporters in the early morning.
But the greenback rebounded to six-month highs near ¥106.70 toward noon thanks to an upturn in the interest rates and buying by Japanese importers for settlement purposes.
In the afternoon, the U.S. currency lost steam amid growing wait-and-see sentiment ahead of key events later in the day, including the Institute for Supply Management’s U.S. manufacturing purchasing managers’ index for February and a speech by Lael Brainard, governor of the U.S. Federal Reserve.
While expecting the dollar’s underside to remain firm, “players are eager to know the key Fed member’s view on the current long-term interest rate levels,” a currency broker said.
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