The dollar moved mostly around ¥106.80-90 throughout Tokyo trading Wednesday, amid an absence of fresh trading incentives.
At 5 p.m., the dollar stood at ¥106.82-82, down slightly from ¥106.84-85 at the same time on Tuesday. The euro was at $1.2093-2094, up from $1.2007-2007, and at ¥129.18-18, up from ¥128.28-29.
Carrying over its weakness from overseas trading — which came in response to remarks of Lael Brained, governor of the U.S. Federal Reserve, suggesting that the U.S. central bank is watching closely the recent surges in U.S. long-term interest rates — the dollar fluctuated around ¥106.70 in the early morning of Tokyo trading.
The U.S. currency then climbed to around ¥106.80 later in the morning, thanks to dollar buying by Japanese importers for settlement purposes.
The bout of buying, however, was short-lived, as dollar selling by Japanese exporters and speculators took the upper hand as the greenback approached ¥107.
While its underside was supported by rises in the Nikkei stock average and other Asian stock markets, the dollar moved tightly around ¥106.80-90 throughout the afternoon.
Market participants held back from active trading as they “were unable to predict the course of U.S. interest rates, which have been determining the moves of the dollar-yen rate recently,” a currency broker said.
An official at a Japanese bank also noted that investors wanted to wait and see the release of Automatic Data Processing Inc.’s U.S. employment data for February and remarks by U.S. and European monetary authorities scheduled later on Wednesday.
In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.