The dollar was firmer around ¥106.20 in Tokyo trading Friday, amid the absence of strong trading incentives.
At 5 p.m., the dollar stood at ¥106.23, up from ¥106.06 at the same time Thursday. The euro was at $1.1833, up from $1.1817, and at ¥125.66, up from ¥125.32.
After dropping to around ¥106 in overseas trading, reflecting a fall in U.S. stock prices, the dollar fluctuated around ¥106.10 throughout the morning of Tokyo trading, caught between buying and selling backed by real demand.
The U.S. currency continued to move within a narrow range for the majority of the afternoon, amid a lack of fresh trading incentives.
“The dollar was also supported against the yen by dollar buying and British pound selling, which was triggered by concerns related to Britain’s exit from the European Union,” an official at a life insurance company said.
Meanwhile, an official at an asset management firm warned of a possible strengthening in the yen against the dollar stemming from confusion in the stock markets, as the U.S. market’s correction phase will likely drag on.