The dollar cut earlier losses to move at around the ¥109 level in late Tokyo trading Monday.
At 5 p.m. the dollar was clocked at ¥108.93-93, down from ¥109.03-03 at the same time Friday. The euro was at $1.2403-2403, down from $1.2473-2473, and at ¥135.11-11, down from ¥136.01-01.
The dollar hovered at around ¥108.70 in early trading following a plunge overseas on Friday prompted by Bank of Japan Gov. Haruhiko Kuroda’s remark that the central bank is “finally close” to its 2 percent inflation target.
“The remark triggered speculation that the BOJ would move to exit its massive easing policy,” a currency broker said.
After falling to around ¥108.50, however, the dollar recovered close to ¥109 by midmorning on buying by Japanese importers and repurchases amid a rise in U.S. long-term interest rates.
The greenback attracted renewed buying interest in late afternoon trading, briefly topping ¥109.
But traders grew cautious about active transactions ahead of U.S. President Donald Trump’s first State of the Union address Tuesday, market sources said.