Dollar recovers to around ¥109.80 in Tokyo

The dollar rose back to around ¥109.80 in Tokyo trading Thursday, supported by the 225-issue Nikkei average’s continued advance and higher U.S. interest rates.

At 5 p.m., the dollar stood at ¥109.83, up from ¥109.77 at the same time Wednesday. The euro was at $1.2181, down from $1.2201, and at ¥133.78, down from ¥133.92.

The dollar rebounded from its decline to around ¥109.50 in overnight trading due to a fall in U.S. long-term interest rates, as players renewed buying vis-a-vis the yen in view of the Nikkei’s extended rally to retake 29,000.

The greenback constantly scaled in the afternoon, temporarily hitting levels slightly higher than ¥109.80.

Position-squaring buying gathered steam ahead of the release Friday of the U.S. Labor Department’s employment report for May, which is expected to show a higher-than-expected nonfarm payroll increase, a currency broker said.

The 10-year Treasury yield’s uptrend in off-hours trading gave a boost to dollar buying, traders said.

But many players pointed out that the dollar may meet with selling as it comes close to ¥110.

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