The dollar firmed to around ¥111.60 in Tokyo trading Wednesday, supported by buying to square positions.
At 5 p.m., the dollar stood at ¥111.59, up from ¥111.26 at the same time on Tuesday. The euro was at $1.1344-1348, almost unchanged from $1.1346-1346, and at ¥126.64, up from ¥126.25.
The dollar moved around ¥111.30 before gradually scaling to around ¥111.70 in midmorning trading thanks to purchases by domestic importers, according to a currency broker.
In afternoon trading, the U.S. currency weakened to around ¥111.50-60 due to selling to lock in gains. But the greenback was underpinned by buying to square positions.
Investors held active trading in check to see the outcome of the U.S. Federal Reserve’s two-day Federal Open Market Committee meeting ending later on Wednesday, said an official of a foreign exchange margin trading service firm.
Although the market believes the Fed will make clearer its “dovish” stance by deciding to slow its pace of interest rate hikes, investors are eager to confirm whether such a decision will actually be made, a Japanese bank official said.