The dollar was marginally softer below ¥113.50 in late Tokyo trading Monday amid a dearth of fresh trading incentives.
At 5 p.m., the dollar stood at ¥113.40-40, down from ¥113.55-55 at the same time Friday. The euro was at $1.1318-1318, down from $1.1355-1355, and at ¥128.36-37, down from ¥128.94-95.
After moving around ¥113.30 in early trading, the dollar reached levels around ¥113.50 later in the morning thanks to a solid performance by the Nikkei 225, and real demand-backed dollar purchases, traders said.
In afternoon trading, the greenback fluctuated narrowly around ¥113.50 before weakening slightly in late trading.
“The dollar-yen rates moved in a narrow range despite a rise in the Nikkei average,” a trust bank official said.
An official of a foreign exchange margin trading service firm said, “A wait-and-see mood prevailed” prior to the U.S. Federal Reserve’s two-day Federal Open Market Committee meeting from Tuesday.