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The dollar was lower below ¥107 in Tokyo trading late Thursday, weighed down by a drop in U.S. long-term interest rates and selling on a rally.

At 5 p.m., the dollar stood at ¥106.93-94, down from ¥107.33-36 at the same time on Wednesday. The euro was at $1.1363-1363, up from $1.1359-1359, and at ¥121.52-52, down from ¥121.93-94.

In overseas trading the previous day, the dollar fell to levels around ¥107 as the U.S. Federal Reserve, after its two-day policy-setting meeting ended Wednesday, indicated it will likely keep interest rates near zero through 2022 and continue to discuss a yield curve control policy.

In Tokyo on Thursday morning, the dollar rose to around ¥107.10, supported by real demand-backed dollar buying, traders said.

The greenback turned top-heavy around the level and moved below 107 around noon.

Despite a plunge in the benchmark 225-issue Nikkei stock average, the dollar rose to levels close to ¥107.20 early in the afternoon, aided by buybacks.

In late trading, the dollar fell below ¥107 again, hit by selling on a rally.

“Dollar selling was accelerated by a drop in U.S. long-term interest rates following the Fed policy meeting,” an official of an asset management company said.

“The yen attracted safe-haven buying,” an official of a bank-affiliated securities firm said, noting the yen’s rise against other major currencies and a fall in the Nikkei.

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