The dollar moved in a narrow range around ¥111.30 in Tokyo trading Tuesday amid a dearth of fresh major trading incentives.
At 5 p.m., the dollar stood at ¥111.35-35, up from ¥111.26-26 at the same time Monday. The euro was at $1.1576-1578, up from $1.1564-1564, and at ¥128.90-93, up from ¥128.67-67.
After moving around ¥111.30-40 in early trading, the dollar was stuck at levels around ¥111.30 in the absence of fresh trading incentives, traders said.
Despite an advance by the Nikkei 225, “currency market players’ wariness over a confrontation between the United States and Iran over the 2015 nuclear deal weighed down the dollar’s topside (versus the yen) to some extent,” an official at a foreign exchange broker said.
An official of a major Japanese bank said the dollar-yen rate “is expected to fluctuate around current levels” in the near future amid a strong wait-and-see mood ahead of the first meeting of a new Japan-U.S. ministerial trade dialogue, dubbed “free, fair and reciprocal,” or FFR, talks, set for Thursday in Washington.
Players are paying attention to whether the U.S. side will take up exchange rates or automobile tariffs during the talks and whether there will be an impact on Japanese stock prices, traders said.