The dollar hit a fresh high of more than 12 years against the yen in Asia trade Tuesday, briefly breaking above ¥125 before weakening on profit-taking and adjusting of positions.
The greenback reached ¥125.07 in the morning, its highest since December 2002, before softening to ¥124.67 around 1:50 p.m. local time (00:50 a.m. ET). Those levels compare with ¥124.80 late Monday in New York.
The U.S. currency initially maintained its overnight gains following solid U.S. manufacturing data for May released by the Institute for Supply Management. Then a bout of dollar buying briefly pushed the dollar through option-related barriers around the ¥125 mark. Some of the dollar buying may have come from short-term players hoping to capitalize on extra gains in the dollar by triggering stop-loss buying orders above ¥125, though it isn’t clear whether they achieved this.
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