The dollar was slightly higher around ¥109.90 in late Tokyo trading Wednesday amid a lack of strong trading incentives.
At 5 p.m., the dollar stood at ¥109.87, up from ¥109.80 at the same time Monday. The euro was at $1.0914, down from $1.0947-0948, and at ¥119.91-92, down from ¥120.21-22.
The Tokyo market was closed Tuesday for a national holiday.
The dollar moved narrowly between ¥109.80-90 before rising above ¥109.90 briefly in late trading, supported by buybacks.
“The (225-issue) Nikkei average hardly moved and there were very few trading incentives capable of moving U.S. long-term interest rates,” an official at an asset management company said, pointing to the lack of incentives as a reason behind the dollar-yen pair’s lackluster trading.
The mood of risk aversion has nearly gone after flaring up in response to the new coronavirus outbreak mainly in China, said an official at a foreign exchange margin trade service firm.
But few market players would feel encouraged to increase dollar buying as long as the U.S. currency stays below ¥110, the official said.