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The dollar climbed above ¥109.70 in Tokyo trading Wednesday, aided in part by real demand-backed buying.

At 5 p.m., the dollar stood at ¥109.77, up from ¥109.48 at the same time Tuesday. The euro was at $1.2201, down from $1.2241, and at ¥133.92, down from ¥134.02.

Recovering from an overnight slump caused by a weaker-than-expected U.S. manufacturing and jobs data, the dollar rose to around ¥109.60 in midmorning trading thanks to purchases by Japanese importers for settlement purposes.

The dollar was also boosted by risk-on buying by investors who took heart from the 225-issue Nikkei average’s rebound.

Players further bought the dollar vis-a-vis the yen in the afternoon in view of the greenback’s rise against the Australian dollar and the euro, which was battered by fresh, dismal German economic data.

“The Australian currency’s weakening can be traced to the extended lockdown measures in Melbourne and a halt in commodity prices’ advance,” a currency broker said.

A wait-and-see mood continued to prevail ahead of the release Friday of the U.S. Labor Department’s employment report for May, traders said.

“We cannot rule out the possibility of the dollar retaking ¥110 if (U.S. nonfarm payroll growth) proves strong,” a Japanese bank official said.

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