The dollar moved in an extremely tight range around ¥105.50 for most of Tokyo trading Monday.
At 5 p.m., the dollar stood at ¥105.47, slightly down from ¥105.49 at the same time Friday. The euro was at $1.2040, up from $1.1963, and at ¥127.00, up from ¥126.22.
After hovering in the ¥105.30 zone in the early morning, the dollar rose to around ¥105.50 on buying induced by the Nikkei stock average’s surge to top 29,000 for the first time in 30 years and six months.
The greenback then turned static due to a dearth of major trading incentives.
“Dollar buying has shown signs of a pause, but players have no reason to sell actively for now,” a Japanese bank official said.
Meanwhile, a securities firm official pointed out that it may be high time for the dollar to face some correction pressure following its quick appreciation vis-a-vis the yen.
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