The dollar edged up to levels around ¥117.30 in lethargic Tokyo trading on Tuesday.
The dollar-yen pair drifted in a narrow range in the absence of fresh market-moving news and after the European and U.S. financial markets were closed on Monday for Christmas holidays.
At 5 p.m., the dollar stood at ¥117.31-32, up from ¥117.16-18 at the same time Monday. The euro was at $1.0444-0445, down from $1.0458-0459, and at ¥122.53-54, compared with ¥122.53-55.
After moving around ¥117.10 in early trading, the dollar rose above ¥117.40 later in the morning reflecting purchases by Japanese importers and on the back of the solid performance of Tokyo stocks.
“The greenback attracted buying also because of a rise in U.S. long-term Treasury bond yields in off-hours trading,” a currency broker noted.
The U.S. currency was then stuck in a tight band around ¥117.30 amid a dearth of fresh incentives.
“Dollar-yen trading will likely be range-bound at current levels in a holiday mood for the rest of the year,” a Japanese bank official said.