The dollar was slightly easier around ¥108.60 in late Tokyo trading Thursday after cutting its losses incurred in the morning.
At 5 p.m., the dollar stood at ¥108.63-63, down from ¥108.72-72 at the same time Wednesday. The euro was at $1.1137-1137, up from $1.1083-1084, and at ¥120.99-99, up from ¥120.50-51.
The dollar fell below ¥108.50 in midmorning trading after U.S. Federal Reserve Chairman Jerome Powell hinted that U.S. interest rates may not rise anytime soon at a news conference following a Fed policy meeting ended Wednesday.
The greenback later cut its losses and returned to around ¥108.60, thanks to a rise in the 225-issue Nikkei stock average, traders said.
“The dollar-yen pair may be swayed by the moves of the British pound following the British general election and by the results of a European Central Bank policy meeting, both slated for Thursday,” a trust bank official said.
Market players “are unlikely to sell dollars aggressively as the Conservative Party is expected to win the British election and optimism remains (in the market) over the U.S.-China trade negotiations,” a Japanese bank official said.