The U.S. dollar climbed to the mid-107 yen zone Thursday morning in Tokyo, reaching the level for the first time since early June as buying was prompted by buoyant global stock markets and expectations that the Bank of Japan will further ease its monetary grip as early as next week.
The dollar briefly traded at around 107.50 yen before fetching 107.18-23 yen at noon, compared with 106.84-94 yen in New York and 106.33-34 yen in Tokyo at 5 p.m. Wednesday.
The euro was quoted at $1.1023-1023 and 118.13-15 yen against $1.1012-1022 and 117.71-81 yen in New York and $1.0994-0996 and 116.90-94 yen in Tokyo late Wednesday afternoon.
The U.S. currency continued to rise against the yen in the morning, inheriting its upward momentum from overseas trading overnight, as traders’ risk appetite strengthened after U.S. shares continued to rise, sending the Dow Jones Industrial Average to yet another record high.
European shares also gained overnight. Japanese stocks climbed in the morning following media reports that the Japanese government is arranging to compile a stimulus package much bigger than traders had previously thought to prop up the flagging domestic economy.
“It’s totally risk-on trading,” said Kengo Suzuki, chief foreign exchange strategist at Mizuho Securities Co.