The dollar fell below ¥107.40 in Tokyo trading late Wednesday, as a sense of caution spread over U.S. monetary policy.
At 5 p.m., the dollar stood at ¥107.33-36, down from ¥107.92-92 at the same time Tuesday. The euro was at $1.359-1359, up from $1.266-1266, and at ¥121.93-94, up from ¥121.59-59.
The dollar rose above ¥107.80 in midmorning trading, supported by real demand-backed buying, traders said.
The greenback fell to levels around ¥107.40 in the afternoon, weighed down by selling on a rally, traders said.
After falling below ¥107.30, the dollar resisted falling further in late trading.
“Dollar selling was triggered by a drop in U.S. long-term interest rates in off-hours trading, reflecting concerns that the U.S. Federal Reserve may discuss a possible yield curve control policy at its two-day policy-setting meeting” through Wednesday, a currency broker said.
But many market sources said that the Fed is unlikely to change its policy at the meeting.
“Attention is also focused on a press conference by Fed Chairman Jerome Powell” after the meeting, an official of a foreign securities firm said.