Dollar Rebounds above ¥108 in Tokyo

The dollar bounced back above ¥108 in Tokyo trading Monday as worries receded about additional provocations by North Korea.

At 5 p.m., the dollar stood at ¥108.41-42, up from ¥107.73-74 at the same time Friday. The euro was at $1.2014-2014, down from $1.2048-2049, and at ¥130.26-26, up from ¥129.81-82.

The dollar attracted active buybacks from early trading after falling sharply below ¥107.50 on Friday amid risk-averse market sentiment due partly to concern over a possible missile launch by North Korea on its national foundation anniversary day on Saturday.

After rising back to around ¥108.50 in Tokyo early Monday thanks to the absence of a missile launch of North Korea over the weekend, the dollar briefly fell below ¥108.20.

But the greenback rebounded above ¥108.50 before noon in line with a sharp rise in Tokyo stock prices.

The dollar’s topside was somewhat capped by profit-taking in the afternoon, but buybacks by European players gathered steam in late trading, briefly pushing up the U.S. currency to around ¥108.60, traders said.

“An excessive risk-averse market mood receded and the dollar traded on a firm note against the yen,” said an official of a foreign exchange margin trading service firm.

But with players finding it difficult to step up dollar purchases ahead of a vote slated for later on Monday on a new U.N. resolution on tightening sanctions against North Korea, a wait-and-see mood is likely to remain for the time being, said a foreign exchange broker.

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