The dollar weakened below ¥107.50 in quiet Tokyo trading Wednesday.
At 5 p.m., the dollar stood at ¥107.48-48, down from ¥107.63-67 at the same time Tuesday. The euro was at $1.1288-1288, up from $1.1285-1286, and at ¥121.33-33, down from ¥121.46-48.
Japanese importers’ buying lifted the dollar to around ¥107.70 in midmorning trading, but the rise prompted selling. In the late afternoon, the dollar dropped close to ¥107.40 but soon pared some losses.
In the end, the dollar repeated ups and downs within a narrow band, traders said.
“Concerns over a coronavirus resurgence prevailed against expectations for an economic recovery,” a Japanese bank official said.
“With Japanese exporters and importers both feeling comfortable with the dollar-yen pair’s current range, few players dare to change the status quo,” another domestic bank official noted.