The dollar moved tightly around ¥107.20 for the majority of Tokyo trading Wednesday, before dropping slightly in late trading.
At 5 p.m., the dollar stood at ¥107.00-03, down from ¥107.27-31 at the same time Tuesday. The euro was at $1.1432-1433, up from $1.1331-1331, and at ¥122.35-36, up from ¥121.55-55.
After falling to around ¥107.10 in overseas trading, reflecting concerns over a further deterioration in U.S.-China ties, the dollar recovered to around ¥107.30 in morning trading in Tokyo, thanks to real demand-backed buying.
Pressured by selling on a rally, the U.S. currency fluctuated tightly around ¥107.20 for the majority of afternoon trading.
In late trading, however, the greenback succumbed to selling pressure from European market players and fell to around ¥107.
The Bank of Japan’s decision, at a two-day policy-setting meeting through the same day, to leave its current massive monetary easing policy unchanged had very little impact on the dollar-yen rate.
“Foreign exchange market players did not react very much to a press conference by BOJ Gov. Haruhiko Kuroda as (Kuroda’s speech) was the same as always,” an official at a major Japanese bank said.