The dollar crept up to levels above ¥107 yen in Tokyo trading Thursday, thanks to position-squaring buying ahead of a discussion event joined by U.S. Federal Reserve Chairman Jerome Powell.

At 5 p.m., the dollar stood at ¥107.15, up from ¥106.82 at the same time Wednesday. The euro was at $1.2052, down from $1.2093, and at ¥129.14, down from ¥129.18.

The dollar climbed to seven-month highs near ¥107.10 in the early morning, in step with a rise in U.S. long-term interest rates.

The U.S. currency, however, fell below ¥107 in midmorning trading, hit by selling by Japanese exporters as well as by investors whose appetite for the yen grew in the wake of the Nikkei stock average’s free-fall.

After the selling ran its course, the dollar went sideways at levels slightly above ¥107, sandwiched between buying on the back of higher U.S. long-term interest rates and “risk-off” selling.

The greenback rose above ¥107.10 in late afternoon trading, as “players moved to square dollar-short positions before the event,” to be held in the small hours of Friday Japan time, a trust bank official said.

“If Powell says something against interest rate rising, and if the 10-year U.S. Treasury yield falls below 1.4%, the dollar would drop to around ¥106.50,” a Japanese bank official said.

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