The dollar paired earlier gains to trade slightly below ¥109.90 in late Tokyo trading Tuesday.
At 5 p.m., the dollar stood at ¥109.86-86, up from ¥109.83-83 at the same time Monday. The euro was at $1.1424-1424, down from $1.1442-1442, and at ¥125.50-50, down from ¥125.68-68.
After moving between ¥109.80 and ¥109.90 in the early morning, the dollar topped ¥110 for the first time in around a month toward noon amid receding worries about the course of the U.S. economy, an official at a major brokerage firm said.
But the greenback lost steam with a lack of powerful follow-through buying due to the Nikkei 225’s sluggish moves after an initial surge, a currency broker pointed out.
Investors grew cautious ahead of U.S. President Donald Trump’s State of the Union address, traders said.
Players were also focusing on a key U.S. nonmanufacturing industry activity index due out Tuesday.
If the index, to be released by the Institute of Supply Management, turns out to be much worse than a market consensus, risk-off selling of the dollars vis-a-vis the yen may gain ground, an official at a foreign exchange margin trading service firm said.