The U.S. dollar rebounded to around the 118 yen line Wednesday morning in Tokyo as solid U.S. manufacturing data continued to provide support, after falling overnight from a three-week high it hit in New York.
At noon, the dollar fetched 117.96-97 compared with 117.69-79 yen in New York at 5 p.m. Tuesday. Japanese financial markets were closed Monday and Tuesday for New Year holidays.
The euro was quoted at $1.0405-0405 and 122.74-78 yen against $1.0401-0411 and 122.48-58 yen in New York late Tuesday afternoon.
After falling overnight from 118.60 yen, its highest level since Dec. 15., the dollar erased much of its losses against the yen in Tokyo as solid U.S. manufacturing data for December and upbeat stocks lifted market sentiment, prompting players to sell the yen for the dollar, dealers said.
“An improvement in Chinese economic data also led to yen-selling,” a foreign exchange dealer said.
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