The dollar was marginally lower, around ¥111.50, in Tokyo trading late Wednesday, caught in a tug of war between selling and buying to adjust positions.
At 5 p.m. the dollar stood at ¥111.48-50, down from ¥111.53-54 at the same time Tuesday. The euro was at $1.1596-1596, down from $1.1630-1630, and at ¥129.29-30, down from ¥129.71-73.
The dollar moved around ¥111.60 in early trading, after gaining ground in overseas markets overnight thanks to rises in U.S. stock prices and long-term U.S. interest rates, traders said.
The greenback fell to around ¥111.50 after the Nikkei 225 turned lower soon after the opening bell. The U.S. currency stayed around that level in afternoon trading.
In late trading, the U.S. currency rose to levels close to ¥111.60 thanks to purchases from European traders before meeting with renewed selling to fall back to around ¥111.50.
“The dollar-yen rate fluctuated tightly” as the Nikkei fell only slightly due to position-adjustment selling following the previous day’s rise, an official at a foreign exchange margin trading service company said. The yuan and Chinese stocks moved on a weak note amid concerns over U.S.-China trade friction, the official added.
The U.S. currency’s downside versus the yen was solid as “higher long-term U.S. interest rates were a potential incentive for dollar buying,” an official at a Japanese bank said.