The dollar held steady above ¥123.30 in late Tokyo trading on Tuesday amid a dearth of fresh incentives following strong U.S. jobs data released late last week.
At 5 p.m., it stood at ¥123.35-35, against ¥123.38-39 at the same time Monday. The euro was at $1.0758-0759, against $1.0763-0764, and at ¥132.72-72, down from ¥132.81-82.
The greenback hovered mostly in a range of ¥123.10-20 in the morning after briefly slipping below it in overseas trading, dampened by overnight falls in U.S. stock prices.
The dollar rose above ¥123.20 at one point in midmorning trading, apparently supported by short covering after a weak reading in China’s consumer price index for October stopped short of prompting sales on the Tokyo Stock Exchange, said an official at a foreign exchange brokerage house.
In the afternoon, the U.S. currency grew firmer as the Nikkei erased earlier losses to enter positive territory.
The dollar’s topside was partly weighed down by the Organization for Economic Cooperation and Development’s downward revisions to its economic growth forecasts, announced the previous day, while its downside was supported by regular purchases by Japanese importers, traders said.
“Without major fresh trading incentives, the currency market was shrouded in a wait-and-see mood,” said an official at a foreign exchange brokerage house.
“The dollar is expected to remain in a correction phase for a while” after the U.S. jobs data lifted it from below ¥122 to above ¥123, said an official at a major Japanese bank.