The dollar moved little around ¥109.50 in lackluster Tokyo trading on Friday.
At 5 p.m., the dollar stood at ¥109.50-51, down from ¥109.55-55 at the same time on Thursday. The euro was at $1.1129-1130, up from $1.1091-1091, and at ¥121.99-99, up from ¥121.50-50.
After rising to around ¥109.70 in overseas trading on the back of a rise in U.S. stocks, the dollar fell to around ¥109.50 in early Tokyo trading, pressured by selling on a rally.
The dollar eased to around ¥109.40 in the morning, weighed down by dollar selling by export-oriented companies. In the afternoon, the greenback fluctuated tightly around ¥109.50 amid a dearth of fresh trading incentives.
“While liquidity has increased for dollar-yen trading due to the reopening of some overseas markets after the (Christmas) holidays, the dollar continued to move within a narrow range versus the yen as there were no fresh trading incentives,” said an official at a foreign-exchange margin trading service firm.
An official at a bank-affiliated securities firm said that the U.S. currency “can’t quite exceed ¥109.70” due to the stagnant movements of the benchmark Nikkei stock average.