The dollar was almost unchanged at around ¥110.10 in late Tokyo trading Tuesday.
At 5 p.m., the dollar stood at ¥110.12-12, against ¥110.10-11 at the same time Monday. The euro was at $1.1155-1155, down from $1.1163-1163, and at ¥122.84-85, down from ¥122.91-91.
After moving around ¥110 in early trading, the dollar rose to around ¥110.20 later in the morning thanks to a rise in the benchmark long-term U.S. Treasury bond yield in off-hours trading.
Toward noon, the greenback slipped below ¥110.20, as the Treasury yield fell back after Reserve Bank of Australia Gov. Philip Lowe indicated that the Australian central bank plans to cut its policy interest rate.
The U.S. currency rose back above ¥110.20 in the afternoon, but the strength proved short-lived.
“We had both positive and negative incentives (for the dollar),” an official at a foreign exchange margin trading service firm said, citing an upward trend of the long-term Treasury yield as a favorable factor and sluggish U.S. stocks as an unfavorable factor.
“I’m keeping a close tab on to what extent the Treasury yield will test its upside after hitting bottom around 2.35 percent recently,” the official said.