The dollar remained higher against the yen after the U.S. currency rebounded from a key technical level at its 200-day moving average.
The greenback also held gains after a rebound in stocks boosted investors’ appetite for risk and an increase in Treasury yields improved the allure of U.S. assets. Australia’s dollar reversed an earlier loss after a private survey of manufacturing in China, the South Pacific nation’s biggest trading partner, unexpectedly improved to its strongest level this year.
“The dollar is being bought as sentiment turned around,” said Yasuhiro Kaizaki, a vice president for global markets in New York at Sumitomo Mitsui Trust Bank Ltd. “Dollar-yen bounced back above the 200-day moving average, so the risk is skewed for a short-term rebound.”
The U.S. currency gained 0.1 percent 101.46 yen as of 11:09 a.m. in Tokyo from yesterday, and was little changed at $1.3681 per euro after advancing 0.1 percent in New York. The yen traded at 138.83 per euro from 138.74.
Dollar-yen touched 100.82 yesterday, the lowest since Feb. 5, before closing in New York at 101.37, above the 200-day moving average at 101.28. It was the third day the greenback dipped below the support line. The last time it repeatedly crossed the gauge and recovered, beginning in October, it marked the start of a 9 percent rally to a five-year high.
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