The dollar fell modestly to around ¥105.60 in lackluster Tokyo trading Friday.
At 5 p.m., the dollar stood at ¥105.60, down from ¥105.81 at the same time Thursday. The euro was at $1.2109, up from $1.2047, and at ¥127.87, up from ¥127.48.
The dollar largely went sideways at levels around ¥105.60, although the greenback was swayed to some extent by Japanese importers’ buying for settlement purposes and selling induced by the 225-issue Nikkei average’s drop. European currencies’ moves also had limited impacts on the dollar-yen pair.
The pair “has been struggling for direction” as players have shown mixed responses to external developments, such as persistent selling despite U.S. long-term interest rates’ upward momentum, a Japanese bank official said.
But a majority of participants point to the underlying strength of the dollar against the yen, citing rises in stocks and the U.S. interest rates on the back of expectations for U.S. monetary easing to continue, a currency broker said.
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