The dollar fell into the 103 yen range Wednesday in Tokyo for the first time in nearly four years amid lingering speculation that Japan has ended its campaign of heavy yen-selling intervention.
Traders also bought the Japanese currency as upbeat sentiment about the Japanese economy has spread, dealers said.
At 5 p.m., the dollar was quoted at 103 yen.94-96, compared with Tuesday’s 5 p.m. quotes of 105 yen.70-80 in New York and 105 yen.76-78 in Tokyo. The dollar last entered 103 yen territory in Tokyo in April 2000.
It moved between 103.75 yen and 105.92 yen during the day, trading most frequently at 104.30 yen.
The dollar began to tumble Wednesday morning as players continued testing its downside amid a lack of aggressive intervention by Japanese monetary authorities.
“Market participants kept selling the dollar to test the authorities’ stance about their currency policy,” said Daisuke Uno, chief market analyst at Sumitomo Mitsui Banking Corp.
Firming Japanese stocks amid upbeat prospects for the Japanese economy also prompted participants to snap up the yen, dealers said.