The dollar firmed to around ¥109 in calm Tokyo trading Wednesday.
At 5 p.m., the dollar stood at ¥108.97-97, up from ¥108.78-78 at the same time Tuesday. The euro was at $1.1079-1079, down from $1.1136-1136, and at ¥120.74-74, down from ¥121.15-15.
The dollar traded around ¥109.10 in the early morning, carrying over its strength in overnight trading backed by the stronger-than-expected U.S. nonmanufacturing index for October released by the Institute for Supply Management and a rise in U.S. long-term interest rates.
The greenback was pushed down to levels around ¥109 by Japanese exporters’ selling later in the morning. The Nikkei stock average’s failure to extend its gain also dampened buying sentiment.
“The dollar’s advance against the yen since Tuesday took a pause,” an asset manager said.
An official at a foreign exchange margin trading service company observed that individual investors shifted to the sell side when the dollar rose above ¥109.