The dollar erased losses to come close to ┬е110.70 in Tokyo trading Tuesday.
At 5 p.m., the dollar stood at ┬е110.69, up from ┬е110.64 at the same time Monday. The euro was at $1.1909, down from $1.1941, and at ┬е131.83, down from ┬е132.12.
The dollar slipped through ┬е110.50 around midmorning, pressured by Japanese exportersтАЩ selling and the Nikkei stock averageтАЩs plunge. But players moved to buy back the dollar in view of the greenback resisting dropping further.
After struggling for direction in the afternoon amid a dearth of fresh events, the dollar topped ┬е110.60 on buying induced by the U.S. currencyтАЩs appreciation against Oceanian currencies and the euro.
тАЬBehind the euro selling were heightened fears about a coronavirus resurgenceтАЭ in Europe led by the delta variant, a currency broker said.
If another COVID-19 wave hits the United States, тАЬthe dollar-yen pair may be weighed on by speculation about the Federal ReserveтАЩs postponement of an interest rate hike,тАЭ a Japanese bank official said.
A domestic brokerage house official forecast that players cannot make major moves ahead of the U.S. Labor DepartmentтАЩs release Friday of its employment report for June.
But it cannot be ruled out that dollar-yen transactions will be reinvigorated after closely watched jobs data for the same month by ADP Inc. are published Wednesday, the bank official added.
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