The dollar was almost flat around ¥110.75 in Tokyo trading Friday, with players waiting to see the outcome of the ongoing U.S.-China trade talks.
At 5 p.m., the dollar stood at ¥110.74-76, against ¥110.76-76 at the same time Thursday. The euro was at $1.1346-1346, up from $1.1334-1334, and at ¥125.65-66, up from ¥125.54-55.
The dollar rose above ¥110.70 around midmorning on buying by Japanese importers, shrugging off earlier sluggishness caused chiefly by a slight downturn in the Nikkei stock average.
The greenback was trapped in a very narrow band in the afternoon amid a dearth of market-moving factors.
“The dollar was supported by growing expectations for progress in the trade negotiations” ahead of a meeting between U.S. President Donald Trump and Chinese Vice Premier Liu He later on Friday, an official of a major securities firm said.
Another market source pointed out that players refrained from active trading in view of range-bound movements of the dollar-yen pair since the beginning of this week.
A Japanese bank official suggested the possibility of “risk-on” dollar-buying gathering steam if the U.S.-China talks are able to make investors expect a certain agreement to be clinched before the current trade war truce expires on March 1.