The dollar drifted in a narrow range above ¥112 in Tokyo trading on Wednesday, as investors retreated to the sidelines amid a lack of major trading incentives.
At 5 p.m., the dollar stood at ¥112.37-38, up from ¥111.71-72 at the same time Tuesday. The euro was at $1.1189-1190, down from $1.1241-1242, and at ¥125.73-74, up from ¥125.58-60.
In New York on Tuesday, the dollar traded on a weak note below ¥112 following deadly terror attacks in Brussels the same day that prompted market players to flock to the yen and other safe-haven currencies.
Later, the greenback rose back above that mark as the market regained stability. The dollar’s rally came also because Federal Reserve Bank of Chicago President Charles Evans showed a bullish prospect for the U.S. economy.
After moving in a tight band above ¥112 in Tokyo Wednesday morning, the dollar briefly rose close to ¥112.50 in the afternoon thanks to buying to adjust positions.
But the dollar failed to extend gains due to a lack of positive factors and drifted around ¥112.30 in late trading.
“The impacts of the terror bombings on financial markets are limited,” an official at a foreign exchange margin trading service firm said.
“A wait-and-see mood is growing ahead of Easter holidays abroad later this week,” an official of a Japanese bank said.