The dollar fluctuated mostly around ¥107.30 in Tokyo trading Wednesday, amid a strong wait-and-see mood among market participants.
At 5 p.m., the dollar stood at ¥107.34-34, marginally up from ¥107.32-32 at the same time Tuesday. The euro was at $1.1265-1268, down from $1.1322-1322, and at ¥120.93-96, down from ¥121.51-53.
In overseas trading, the dollar fell to around ¥107.20 after U.S. Federal Reserve Chairman Jerome Powell offered a pessimistic outlook on the U.S. economy.
After recovering to around ¥107.30 in the early morning of Tokyo trading, the greenback eased below ¥107.20, reflecting a fall in the benchmark 225-issue Nikkei average.
Although supported by buying on dips, the U.S. currency fluctuated tightly around ¥107.30 for the rest of the day.
“While market participants are shifting over to risk-averse mode against the backdrop of Powell’s statements, the North Korean issue and heightened tensions between China and India, the dollar-yen rate struggled for direction, as investors were actively buying both currencies,” an official at a Japanese bank said.
Meanwhile, an official at a bank-affiliated securities firm noted that such incentives “were not strong enough to determine” the dollar’s movements versus the yen.
The official added that the market mainly saw position-adjusting selling and buying during the day’s trading.