The dollar climbed to around ¥108.50 in Tokyo trading Monday, supported by hopes for an early U.S. economic recovery.

At 5 p.m., the dollar stood at ¥108.49, up from ¥108.27 at the same time Friday. The euro was at $1.1886, down from $1.1949, and at ¥128.96, down from ¥129.38.

Meeting with position-squaring selling by Japanese exporters, the dollar moved on a weaker note around ¥108.30 in the early morning after hitting nine-month highs above ¥108.60 in overseas trading Friday. But it rebounded close to ¥108.50 by noon.

Dollar buying against the euro in anticipation of the U.S. economy’s faster recovery from the coronavirus crisis than the European economy also made the greenback attractive vis-a-vis the yen, a currency broker said.

Following a dip below ¥108.40 on selling induced by the 225-issue Nikkei average’s downturn, the dollar retook ¥108.50 in late afternoon trading thanks to buying by foreign players.

With U.S. long-term interest rates remaining high, the dollar is unlikely to suffer a sell-off.

“But yet the dollar is rising too fast,” a Japanese bank official said.

Players have increasingly taken to the sidelines ahead of policy-setting meetings by the European and U.S. central banks later this week and next week, respectively, the official added.

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