The dollar was nearly unchanged at around ¥111.85 in Tokyo trading late Tuesday as players were paying close attention to upcoming events such as a meeting of the Japanese and U.S. finance ministers.
At 5 p.m., the dollar stood at ¥111.85-85, compared with ¥111.89-90 at the same time Monday. The euro was at $1.1245-1245, against $1.1246-1246, and at ¥125.78-78, against ¥125.84-85.
Market players “are vigilant over whether a proposed currency clause will be taken up when Finance Minister Taro Aso and U.S. Treasury Secretary Steven Mnuchin meet, probably on Thursday, an official at a Japanese bank said.
Mnuchin has insisted that such a clause should be included in a proposed trade agreement between Japan and the United States to prevent Tokyo’s competitive currency devaluations.
During Tokyo trading hours, the dollar briefly rose above ¥111.90 as the Nikkei 225 stock average swung back into positive territory after earlier weakness.
“Selling easily emerged after the dollar approached ¥112” ahead of the 10-day Golden Week holiday period that starts Saturday, an official of another Japanese bank said.
The dollar’s downside was also solid because players “aren’t in the phase of selling it actively,” an official at a foreign exchange margin trading service firm said.