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Dollar firmer around ¥118.80 in Tokyo


The dollar gained ground to move mostly around ¥118.80 in Tokyo trading late Thursday, with a wait-and-see mood growing before a Bank of Japan decision on monetary policy on Friday.

At 5 p.m., the dollar stood at ¥118.77-78, up from ¥118.24-25 at the same time Wednesday. The euro was at $1.0875-0875, up from $1.0869-0870, and at ¥129.18-20, up from ¥128.53-54.

The dollar was solid around ¥118.50-60 in early trading thanks to purchases reflecting overnight rises in stocks overseas and the price of crude oil. But it retreated below ¥118.40 after Tokyo stocks got off to a weak start.

When stocks proved resilient, the greenback briefly rose above ¥118.90 on purchases by Japanese importers.

The dollar later came under renewed selling pressure and fell back to around ¥118.50-60 after Tokyo stocks slipped into negative territory in the afternoon.

The dollar was also pressured by a statement from the U.S. Federal Reserve on Wednesday after its two-day Federal Open Market Committee meeting.

“The FOMC statement showed the Fed’s somewhat dovish views” on the U.S. economy and global financial conditions, an economist of a think tank said.

Still, the dollar rose back to around ¥118.80 in late hours.

“Currency players found it difficult to sell the dollar as the possibility of the BOJ carrying out additional monetary easing cannot be ruled out,” an official at a foreign exchange margin trading service firm said.

Players are now awaiting the results of the BOJ’s closely watched two-day monetary policy meeting through Friday, market sources said.