Business / Financial Markets | CURRENCY MARKET

Dollar lower around ¥108.60 in late Tokyo trading


The dollar was lower at around ¥108.60 in Tokyo trading late Thursday, after no fresh monetary easing measures were taken at a closely watched policy-setting meeting of the Bank of Japan.

At 5 p.m., the dollar stood at ¥108.60-60, down from ¥108.85-85 at the same time on Wednesday. The euro was at $1.1163-1163, up from $1.1121-1122, and at ¥121.24-25, up from ¥121.05-06.

In overseas trading the previous day, the dollar temporarily rose above ¥109.20, after a statement released by the U.S. Federal Reserve following a two-day Federal Open Market Committee meeting through Wednesday was taken by investors as a message that the Fed will pause interest rate cuts in the near future. But the dollar soon fell to levels around ¥108.80.

In Tokyo on Thursday, the dollar fell to levels close to ¥108.60 in midmorning trading, dragged down by real demand-backed dollar selling and speculative selling ahead of the release of the outcome of a two-day Bank of Japan Policy Board meeting through the same day, traders said.

After rising above ¥108.70 thanks to buybacks, the greenback fell below the level again after the BOJ opted not to expand its negative interest rate policy at the meeting.

The dollar was at a near standstill in late trading.

The dollar moved in a tight range as “the monetary policy announcements by the U.S. and Japanese central banks were in line with market expectations,” an official of an asset management company said.

“Looking ahead, the market will weigh up U.S. economic data to predict future monetary policy decisions,” an official of a foreign exchange margin trading company said.

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