Amid a dearth of fresh trading incentives, the dollar dropped below ¥108 in Tokyo trading Friday.
At 5 p.m., the dollar stood at ¥107.92-93, down from ¥108.04-04 at the same time on Thursday. The euro was at $1.1050-1050, slightly down from $1.1051-1051, and at ¥119.27-28, down from ¥119.41-42.
After moving around ¥107.90 in the morning, the dollar continued to fluctuate within a narrow range between ¥107.80 and ¥107.90 until the late afternoon.
While the greenback temporarily dropped to around ¥107.70 in late trading, buying on dips pushed up the U.S. currency back to around ¥107.90.
On the sluggish trading, an official at a foreign exchange margin trading service firm said that the dollar appeared to be “in a lull” after the end of policy-setting meetings by the European Central Bank, the U.S. Federal Reserve and the Bank of Japan.
Market players are now expected to focus on speeches delivered by members of the Fed’s Federal Open Market Committee to forecast future interest rate cuts by the Fed.
Meanwhile, the United States and China kicked off high-level trade talks Thursday.
“The market can’t react unless there are any developments” in the talks, an official at a bank-affiliated securities firm said.