The dollar gained on Monday after upbeat data restored some calm to the financial markets, prompting equities to rally back from deep losses and triggering a rise in Treasury yields.
The greenback got a further lift against the yen after reports that Japan’s $1.2 trillion Government Pension Investment Fund (GPIF) could boost foreign asset holdings, seen spurring demand for foreign currencies. The dollar was up 0.4 percent at 107.345 yen, pulling further away from a five-week low of 105.195 hit the previous week.
The U.S. currency hit a six-year high at the start of this month, poking above 110 yen – a level at which nearly half of Japanese firms think the government should start defending it, according to a Reuters poll.
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