The dollar moved in a narrow range around ¥111.10 in Tokyo trading Monday amid a lack of fresh trading incentives.
At 5 p.m., the dollar stood at ¥111.10-10, down from ¥111.17-18 at the same time Friday. The euro was at $1.1194-1194, up from $1.1166-1167, and at ¥124.37-38, up from ¥124.15-15.
The U.S. currency gained upward momentum on the back of firmer Japanese stocks and a rise in U.S. long-term interest rates in off-hours trading. But the dollar’s topside was capped amid a lack of fresh incentives, traders said.
Players were unable to be active in dollar purchases due to weaker U.S. economic indicators last week, an official at a major Japanese bank said.
Dollar-yen trading is “likely to remain directionless for the time being as players feel that there will be no market-moving events in the near term” after last week’s monetary policy meetings in the United States and Japan, the official said.
Amid the absence of major market-moving factors, players are paying attention to U.S. inflation outlooks expected to be provided by several Federal Reserve officials this week, a Japanese bank official said.