The dollar was weaker below ¥108.10 in Tokyo trading late Thursday amid increased expectations for an early U.S. interest rate cut.
At 5 p.m., the dollar stood at ¥108.05-09, down from ¥108.95 at the same time Wednesday. The euro was at $1.1274-1277, up from $1.1215, and at ¥121.86, down from ¥122.19-20.
The dollar moved around ¥108.30-40 in the early morning, after selling hit the greenback in overseas trading as U.S. Federal Chairman Jerome Powell suggested an interest rate cut at the Fed’s policy-setting meeting at the end of July.
Weighed down by renewed selling, the dollar breached ¥108 in midmorning trading and fell below ¥107.90 around noon.
The dollar resisted falling further around the level and rose back above ¥108 in late trading, helped by buying on dips after a rise in Tokyo stock prices, traders said.
Powell’s congressional testimony Wednesday, seen as more dovish than expected, “revived the rate cut expectations that took a hit from Friday’s release of a stronger-than-expected U.S. government jobs report,” an official at a life insurer said.