The dollar fell below ¥101 for the first time in about 3½ months in Tokyo trading Wednesday, as Bank of Japan Gov. Haruhiko Kuroda poured cold water on speculation of additional monetary easing measures.
At 5 p.m., the dollar was quoted at ¥100.94-96, down from ¥101.38-39 at the same time Tuesday. The euro stood at $1.3713-3716, against $1.3694-3695, and at ¥138.45-47, compared with ¥138.84-85.
The U.S. currency drifted on a weaker note versus the yen early in the morning after being weighed down by drops in U.S. stock prices and long-term interest rates in overseas trading overnight, traders said.
The dollar fell to around ¥101.20 in midmorning trading as the Nikkei average temporarily slipped below the psychologically important line of 14,000, traders added.
Late in the morning, the dollar briefly rose to around ¥101.40 after the BOJ announced a decision to leave its monetary policy intact.
Just after the start of Kuroda’s news conference in the late afternoon, however, dollar sales intensified, sending the greenback to around ¥100.80 briefly.
The dollar stayed below ¥101 until late trading.
The BOJ statement on its policy decision and Kuroda’s news conference suggested that the central bank and Kuroda “have become more confident about the future course of the economy than before,” said an official of a major domestic bank.
“Players dumped dollars for yen, disappointed that the BOJ seems to be reluctant to take additional easing measures,” a currency market broker said.