The dollar was firmer around ¥110.90 in late Wednesday trading in Tokyo, lifted by a rise in Japanese shares.
At 5 p.m., the dollar stood at ¥110.88-89, up from ¥110.65-66 at the same time on Tuesday. The euro was at $1.1342-1342, up from $1.1299-1299, and at ¥125.77-78, up from ¥125.04-04.
After moving around ¥110.50-60 in early trading, the dollar rose above ¥110.70 later in the morning thanks to buying by Japanese importers. The greenback then gained further ground to top ¥110.90 on the back of the firmness of the key Nikkei stock average.
In the afternoon, the U.S. currency fell below ¥110.80 as the Nikkei shed some of its earlier gains, but rose back above the threshold after Tokyo stocks regained steam.
The dollar was “supported by the view that U.S.-China trade negotiations are going well,” a currency broker said.
Meanwhile, the dollar’s topside was capped around ¥111 due to a bout of profit-taking, traders said.
Dollar selling would increase if minutes of the U.S. Federal Reserve’s Jan. 29-30 policy-setting meeting, to be released later on Wednesday, turn out to be dovish, an official at a foreign exchange margin trading service firm said.
But if U.S. stocks rise following the release of the minutes, the dollar would also likely attract buying, the official added.