The dollar was firmer around ¥107.70 in Tokyo trading late Wednesday.
At 5 p.m., the dollar stood at ¥107.65-65, up from ¥107.42-42 at the same time Tuesday. The euro was at $1.0942-0942, up from $1.0928-0929, and at ¥117.79-80, up from ¥117.39-40.
Heightened expectations for additional monetary easing by the Bank of Japan, spawned by the BOJ’s announcement Tuesday that it will hold an extraordinary monetary policy meeting Friday, sent the dollar up to around ¥108 in overseas trading.
After falling to around ¥107.60 in the early morning of Tokyo trading, the greenback rose once again to around ¥108 later in the morning, thanks to real demand-backed buying by importers and a climb in the benchmark 225-issue Nikkei average.
The U.S. currency then fluctuated tightly around ¥107.70-80 for most of the afternoon amid a dearth of fresh trading incentives, before falling slightly in late trading.
“Risk appetite among market participants has been growing gradually,” an official at a foreign exchange margin trade service firm noted.
The official added that market players are now focused on whether economic indicators for May will show improvement from April.