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Dollar in tight band around ¥101.40

JIJI

The dollar was boxed in a narrow range below ¥101.50 in Tokyo on Monday, ahead of major market-moving events later this week.

At 5 p.m., the dollar was quoted at ¥101.38-38, down from ¥101.42-43 at the same time Friday. The euro stood at $1.3651-3654, up from $1.3619-3621, and at ¥138.39-42, up from ¥138.13-16.

After changing hands at around ¥101.40, the dollar fell below ¥101.30 toward midmorning rate-fixing, mainly due to selling from Japanese exporters on the final day of June, traders said.

Sluggish moves in Tokyo stock in the morning also dealt a blow to the greenback, they said.

In the afternoon, however, the dollar showed some resilience after the TSE regained strength. The dollar had nearly wiped out its losses by late trading when European players began to join in, the traders said.

“An increasing number of players are adopting the view that the dollar will depreciate in the short run,” after it fell last week through the 200-day moving average, which stands at around ¥101.70, an official at a Japanese bank said.

The U.S. currency is now “vulnerable to adjustment selling,” a broker said.