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Dollar tracks ¥120 level in Tokyo trading


The dollar fluctuated narrowly above ¥120 in Tokyo Friday, as transactions lacked vigor with a limited number of participants.

At 5 p.m., the dollar was at ¥120.29-37, down from ¥120.45-46 at the same time Thursday. The euro was at $1.0965-0970, up from $1.0946-0947, and at ¥131.96-97, up from ¥131.85-86.

After trading above ¥120.30 in early hours, the greenback soon fell to around ¥120.20, weighed down by position-adjusting selling.

The pair were stuck around the level for the rest of the morning. The consumer price index for November and other Japanese economic data released early in the morning had little impact on the market, traders said.

In the afternoon, the dollar fell to around ¥120 after the Nikkei average turned lower. But the dollar pared losses against the yen in late hours, supported by purchases to adjust positions, the traders said.

In the absence of many participants on Christmas Day, “market activities were limited to position-adjustment moves,” a currency broker said.

Other than stock price movements, “no trading incentive was seen in the market,” an official of a major Japanese bank said.

But “market players were seen eager to buy dollars at levels around ¥120,” the official said.

As Japanese players will be away around the turn of the year, the market will remain quiet until early next year, an official of a foreign brokerage house predicted.