The dollar was almost unchanged in late Tokyo trading Monday amid a dearth of fresh trading incentives.
At 5 p.m., the dollar stood at ¥108.65-65, against ¥108.62-63 at the same time Friday. The euro was at $1.1119-1120, down from $1.1134-1134, and at ¥120.82-82, down from ¥120.94-121.01.
In the morning, the greenback dropped to around ¥108.40 briefly, pushed down by dollar selling by Japanese exporters and sell orders triggered by a drop in the Nikkei 225 stock average, traders said.
The U.S. currency gradually recovered to above ¥108.60 in the afternoon thanks to buybacks and hovered around late Friday’s level in the late afternoon.
Currency market players were in a wait-and-see mood because of Japanese and U.S. monetary policy meetings, according to the traders. The Bank of Japan started a two-day meeting Monday, while the U.S. Federal Reserve will hold a two-day meeting starting Tuesday.
“In addition, there were no trading incentives, such as announcements of major economic statistics,” an official of a foreign exchange margin trading service firm said.
Players “are reluctant to tilt their positions” before China’s announcement Wednesday of its manufacturing purchasing managers index for July, a trust bank official said.
Regarding the Fed’s meeting, the official said the dollar will be pushed down if Fed Chairman Jerome Powell hints at what would be an additional interest rate cut in September at a news conference Wednesday.