The dollar was almost flat around ¥113.10 in Tokyo trading late Wednesday, after overcoming the early sluggishness thanks to Tokyo stocks’ resilience.
At 5 p.m., the dollar stood at ¥113.07, down from ¥113.10 at the same time Tuesday. The euro was at $1.1330, down from $1.1380, and at ¥128.13, down from ¥128.72.
After falling below ¥112.70 in early trading, the dollar rebounded above ¥113 later in the morning due to purchases from domestic importers, with the benchmark 225-issue Nikkei stock average recouping some earlier losses.
For most of afternoon trading, the greenback moved above ¥113, with the Nikkei continuing to show some resilience on its downside, traders said.
With the dollar’s topside capped by a fall in long-term U.S. interest rates, concerns over an economic slowdown in the United States has emerged due to an inversion of two- and five-year U.S. Treasury yields, a currency broker said.
The dollar “failed to advance (versus the yen) substantially” before the closure of the U.S. bond and stock markets on Wednesday, the broker added.