The dollar eased to around ¥109.00 yen in Tokyo trading Tuesday, reflecting its weakness against the euro.
At 5 p.m., the dollar stood at ¥108.96, down from ¥109.24 at the same time Monday. The euro was at $1.2202, up from $1.2135, and at ¥132.96, up from ¥132.58.
The dollar rose close to ¥109.30 yen on buying spurred by the 225-issue Nikkei average’s sharp rebound. But it soon lost steam as Hong Kong and Taiwanese stocks rallied and crude oil futures rose.
In the afternoon, the dollar sank into ¥108 territory due to accelerated euro-buying against the greenback and other currencies by European players.
“The dollar’s drop against the yen was limited because the Japanese currency was also sold amid a growing risk-on sentiment,” a currency broker said.
“European and U.S. monetary policies are drawing investor attention” amid persistent speculation that the Federal Reserve will taper its asset purchases early and that the European Central Bank will shift from the current emergency stimulus, a Japanese bank official said.
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