The dollar was almost unchanged around ¥111.80 in Tokyo trading late Wednesday as a wait-and-see mood grew before the Bank of Japan announces the outcome of its two-day monetary policy meeting on Thursday.
At 5 p.m., the dollar stood at ¥111.81-81, against ¥111.85-85 at the same time Tuesday. The euro was at $1.1216-1216, down from $1.1245-1245, and at ¥125.41-43, down from ¥125.78-78.
The dollar-yen pair moved in a narrow range as investors retreated to the sidelines to check the Japanese central bank’s economic outlook report, due out Thursday, a currency broker said.
“Active trading was held in check” ahead of a meeting between Japanese Finance Minister Taro Aso and U.S. Treasury Secretary Steven Mnuchin and a summit between Japanese Prime Minister Shinzo Abe and U.S. President Donald Trump later this week, an official at a foreign exchange margin trading service firm said.
The dollar briefly rose close to ¥112 on buying from Japanese importers before falling back below ¥111.90.
The U.S. currency’s topside becomes heavy when it approaches ¥112 as players backed by real demand are eager to hold the yen prior to Japan’s 10-day holiday period starting on Saturday, an official at a foreign exchange margin trading service firm said.