The dollar rose to near ¥122 in Tokyo trading on Wednesday, led by higher stock prices in Japan and abroad.
At 5 p.m., the dollar was at ¥121.92-92, up from ¥120.61-61 at the same time Tuesday. The euro was at $1.0939-0940, down from $1.1052-1053, and at ¥133.38-40, up from ¥133.30-31.
The dollar was solid around ¥121.70 in early trading after the greenback drew demand in overnight trading overseas thanks to stable U.S. consumer price data.
The dollar was also aided by a rise in U.S. stock prices that was triggered by a rebound in crude oil prices.
Driven by a strong rebound in Japanese stock prices, the dollar extended gains and rose to around ¥121.90.
Still, the dollar failed to top ¥122 as traders refrained from stepping up buying of the currency ahead of a monetary policy announcement by the U.S. Federal Reserve later on Wednesday. “Traders faced difficulty moving aggressively” ahead of the major event, an official at a foreign exchange brokerage firm said.
The dollar fell back below ¥121.70 temporarily amid profit-taking. “It was pressured by selling aimed at locking in profits at levels just below the psychologically important threshold of ¥122,” another currency broker official said.
Depending on a U.S. monetary policy decision, the dollar is expected to move between ¥120 and ¥122, an official at a foreign-affiliated securities house said.