The dollar fell below ¥107.10 in late Tokyo trading Tuesday after fluctuating around ¥107.25 amid a lack of trading incentives.
At 5 p.m., the dollar stood at ¥107.06-06, down from ¥107.22-22 at the same time Monday. The euro was at $1.0839-0840, down from $1.0841-0842, and at ¥116.06-06, down from ¥116.24-25.
Although the dollar was lifted above ¥107.30 by Japanese importers buying for settlement purposes, there were no follow-through purchases.
“The dollar-yen pair was almost static in Tokyo hours,” ahead of a national holiday in Japan and policy-setting meetings by the U.S. Federal Reserve and the European Central Bank, an official at a commercial bank said.
“Now that dollar squeeze concerns have receded to a greater extent, the greenback tends to weaken against the yen,” a trust bank official said.