The dollar rose to around ¥106.80 in Tokyo trading Tuesday, helped by the benchmark Nikkei stock average’s robust start.
At 5 p.m., the dollar stood at ¥106.84, up from ¥106.60 at the same time Monday. The euro was at $1.2007, down from $1.2076, and at ¥128.28, down from ¥128.73.
The dollar fluctuated tightly around ¥106.70 in the early morning.
The U.S. currency then climbed to six-month highs around ¥106.90 later in the morning, thanks to the Nikkei average’s strength in early trading, as well as dollar buying by Japanese importers, traders said.
After the bout of buying ran its course, the greenback fell to around ¥106.70 in the early afternoon, following the Nikkei’s downturn into negative territory.
In the late afternoon, the dollar moved within a tight range around ¥106.80 amid a dearth of fresh trading incentives.
“The dollar is expected to turn top-heavy once it exceeds the ¥107 line,” an official at a Japanese bank said.
Still, the official also said that dollar demand from Japanese importers may increase toward the fiscal year-end this month, suggesting the possibility that the U.S. currency may still rise to approach ¥107.50.
An official at a trust bank said that the dollar, if anything, is more likely to rise due to wider Japan-U.S. interest rate gaps.
In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.