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The dollar rose back to around ¥109.70 on buying the dip after weakening in Tokyo trading Monday.

At 5 p.m., the dollar stood at ¥109.65, up from ¥109.32 at the same time Friday. The euro was at $1.1784, almost unchanged from $1.1785, and at ¥129.23, up from ¥128.86.

After moving around ¥109.70 in overnight trading, the dollar rose close to ¥109.80 in the early morning on buying backed by unabated expectations for a U.S. economic recovery.

But the greenback soon headed south, weighed down by Japanese exporters’ fiscal year-end selling to square positions and a fall in U.S. long-term interest rates in off-hours trading.

The U.S. currency slipped through ¥109.40 around midafternoon, following a crude oil sell-off on media reports that a container vessel that had been stuck in the Suez Canal was refloated.

Speculation that Credit Suisse may incur a huge loss after a hedge fund defaulted on margin calls by the major Swiss lender and others “has quickly made investors risk-averse,” a Japanese bank official said.

“It has now become necessary to closely monitor lending institutions’ financial conditions,” a currency broker noted.

The dollar recouped early losses against the yen in late trading, as players moved to buy the dip on the back of “unfading rosy prospects for the U.S. economy,” the same broker said.

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