LONDON: The dollar rebounded to the upper 119 yen zone Tuesday morning in Tokyo following its sharp fall overnight in New York, as rallying Tokyo stocks somewhat eased a risk-averse mood among market participants that had spread amid a global rout.
At noon, the dollar fetched 119.86-87 yen compared with 118.36-46 yen in New York and 120.40-41 yen in Tokyo at 5 p.m. Monday.
The euro was quoted at $1.1532-1537 and 138.24-25 yen against $1.1615-1625 and 137.41-51 yen in New York and $1.1483-1485 and 138.26-30 yen in Tokyo late Monday afternoon.
After plunging to a near seven-month low in the lower 116 yen range in New York on Monday, the dollar regained the lost ground against the yen in Tokyo, briefly rising above the 120 yen line as Tokyo stocks rebounded from earlier steep losses.
Many market players bought back the dollar “at a moderate price” as they apparently considered its earlier slide to the 116 yen level as excessive, said Yuzo Sakai, manager of foreign exchange business promotion at Tokyo Forex & Ueda Harlow.
Comments from some senior government officials in the morning that suggested Tokyo may take additional stimulus measures to boost the economy also helped prompt traders to reverse their earlier selling of the dollar, Sakai said.
Meanwhile, the euro remained firm against the dollar, while slightly advancing against the yen.
