The dollar gave up earlier gains to move around ¥118.50 in Tokyo trading late Monday, amid a wait-and-see mood before key monetary policy meetings this week.
At 5 p.m., the dollar stood at ¥118.56-56, up from ¥118.07-08 at the same time Friday. The euro was at $1.0814-0814, down from $1.0830-0831, and at ¥128.22-23, up from ¥127.87-89.
The dollar was solid around ¥118.70-80 in early trading, carrying over its strength from overseas trading on Friday, when the U.S. currency drew demand on the back of rises in European and U.S. stocks and a rebound of crude oil prices.
The dollar briefly came under selling and fell below ¥118.50, hit by selling to lock in profits following the greenback’s sharp rise late last week.
Still, the dollar resisted falling further thanks to purchases by Japanese importers.
“As the dollar drew buybacks at levels around ¥118.40, market players saw the U.S. currency’s downside as solid,” an official at a foreign exchange broker said.
The dollar later attracted renewed demand and briefly topped ¥118.80, supported by rises in Tokyo and Chinese stock prices.
But the dollar pared gains in late hours and traded around ¥118.50 due partly to a wait-and-see mood ahead of the U.S. Federal Reserve’s two-day policy-setting meeting from Tuesday and the Bank of Japan’s two-day policy board meeting from Thursday.
“The dollar lacks additional factors that would push it above ¥119 for now,” an official at a foreign exchange margin trading service firm said.