On Thursday, during Asian trade, the greenback managed to strengthen against the Japanese yen, with the emergence of purchasing in the Japanese stock market, prompting some currency traders to quit the traditional safety of the yen.
The US dollar traded at ¥112.28, which was higher than Wednesday’s ¥111.95 in New York. Then, having touched ¥111.04 overnight, very close to its previous low of ¥110.98 set on February 11, the greenback leapt back to above the ¥112 level, as American shares and oil recovered.
Exactly during Asia trade, the evergreen buck gained traction. It also applied to the benchmark Nikkei Stock Average, which stretched earlier gains to improve risk market sentiment. During the late session, the index grew 1.4%. Apart from that, dip-buying form Japanese importers appeared to be an extra backup to the greenback’s strength against the yen.
Tokyo-based dealers are assured that the greenback’s uptrend is quite limited by persistent selling pressure. Market participants have been accelerating the Japanese currency, buying this stuff as a traditional safe harbor asset during troubled times, given global uncertainties partially stemming from slumping oil prices and China’s concerns.