The dollar moved in a narrow range around ¥106.50 in Tokyo trading Wednesday due to a lack of major trading incentives.
At 5 p.m., the dollar stood at ¥106.59, down from ¥106.96 at the same time Tuesday. The euro was at $1.2388, up from $1.2319, and at ¥132.04, up from ¥131.78.
Investors retreated to the sidelines to watch U.S. economic data due out later on Wednesday, including retail sales in February, market sources said.
“Traders found it difficult to buy dollars actively” following U.S. President Donald Trump’s dismissal of Secretary of State Rex Tillerson and amid talk of potential U.S. tariffs against China, an official at a currency brokerage house said.
But “there were little reasons for the dollar to slip below ¥106,” an official at a Japanese securities house said, citing no remarkable developments in the political scandal involving a discount sale of state-owned land.
In early trading, the dollar briefly rose above ¥106.70 thanks chiefly to buying from Japanese importers. But it soon fell back as Japanese stocks fell and U.S. interest rates dropped in off-hours trading.
“Facing a series of negative factors, the dollar is expected to stay top-heavy for the time being,” an official at a foreign exchange margin trading service firm said.