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The dollar fluctuated tightly around ¥109.20 in Tokyo trading Tuesday amid a strong wait-and-see mood before the U.S. Federal Reserve’s two-day policy-setting meeting through Wednesday.

At 5 p.m., the dollar stood at ¥109.25, up marginally from ¥109.18 at the same time Monday. The euro was at $1.1916, down slightly from $1.1919, and at ¥130.19, up from ¥130.16.

The dollar rose to levels above ¥109.20 in the morning, helped by a climb in the key Nikkei stock average on the Tokyo Stock Exchange.

The bout of dollar buying, however, proved short-lived as investors “considered the levels to be the U.S. unit’s upside,” a currency broker said.

In the afternoon, the greenback moved tightly between ¥109.10 and ¥109.20, with the Nikkei failing to extend its gains.

The dollar then crept above ¥109.20 in late trading, reflecting a rise in U.S. long-term interest rates and euro selling vis-a-vis the dollar.

“Market players found it difficult to engage in active trading” until they confirm the results of the Fed’s Federal Open Market Committee meeting, an official at a trust bank said.

The currency broker said that the wave of euro selling in late trading was triggered by news that some European nations have suspended the use of a novel coronavirus vaccine developed by Britain’s AstraZeneca PLC following reports that blood clots were found among people who received the vaccine.

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