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Dollar above ¥111 in late Tokyo trading

JIJI

The dollar was above ¥111 in Tokyo trading late Monday, amid a closely watched policy decision by the Bank of Japan at a two-day meeting through Tuesday.

At 5 p.m., the dollar stood at ¥111.02. The euro was at $1.1668, up from $1.1646, and at ¥129.56, up from ¥129.30.

In the early morning, the dollar dropped from around ¥111 to below ¥110.90.

After recovering to levels above ¥111 thanks to dollar-buying for settlement purposes in midmorning trading, the U.S. currency gained further ground, rising above ¥111.10 before noon.

The dollar moved on a weaker note in the afternoon.

Dollar-yen rate movements were limited before the BOJ’s policy announcements Tuesday, traders said.

The central bank is considering tolerating rises in 10-year Japanese government bond yields above its target of around zero percent, sources said.

But an official of a foreign exchange margin trading service firm said, “We’re not in a situation where monetary-tightening is allowed.”

“If no policy change is made at the meeting, the dollar will have some room to go up,” the official added.