The dollar was holding steady against major currencies on Friday after skidding to a five-week low against the yen in early trade after further positive data on the Japanese economy.
The yen drove up to 105.63 per dollar, a level not seen since February 18, before easing back to the 106 level on what traders said was dollar-buying intervention by the Japanese authorities around the 105.70 level.
The dollar was trading at 106.08 yen, only slightly down from late New York levels.
Data on Friday showed that spending by Japanese households rose for the fourth consecutive month in February and retail sales were also higher, suggesting Japan's export-led recovery may be trickling down to consumers.
The yen was also helped by Japan's core consumer price index (CPI), which remained unchanged on the year in February, suggesting to some a reduction in deflationary pressures.
The figure was slightly better than a 0.1 percent decline forecast by economists.
It was the latest upbeat news on the Japanese economy, which analysts credit for recent yen strength.
The Nikkei share average closed up 2.08 percent at 11,770.65, a 22-month high, helped by foreign investors who continued to buy after snapping up a record 1.1483 trillion yen ($11 billion) of Japanese stocks in the week ended March 19.
The US currency held steady against the euro, supported by speculation about an eventual rise in US interest rates.
The euro was trading at around $1.2136 pulling back from a high of $1.2202 on Thursday as talk continued that the European Central Bank may cut interest rates in the near future.
Against the yen, the single currency was at 128.77 yen flat on New York levels.
The dollar's rebound to 106 yen did little to change market perceptions that it would head lower, with traders saying that a fall to 105 yen was just a matter of time given its drop from the 112 level in just three weeks.
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