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The dollar eased to around ¥107.70 in Tokyo trading Monday, as players took to the sidelines ahead of monetary policy meetings in Japan and the United States.

At 5 p.m., the dollar stood at ¥107.71, down from ¥107.91 at the same time Friday. The euro was at $1.2097, up from $1.2053, and at ¥130.30, down from ¥130.08.

The dollar weakened below ¥107.70 by the early afternoon, as players stepped up selling vis-a-vis the yen in view of the euro’s appreciation against the U.S. currency. Japanese importers’ dollar buying for settlement purposes lacked vigor.

The dollar temporarily hit levels around ¥107.65 in the afternoon as selling was fueled by rises in currencies of resources-rich nations and the copper price. But the greenback recouped some losses following an upturn in U.S. long-term interest rates in off-hours trading.

The dollar’s topside was heavy before the release of the business climate index of Germany’s Ifo institute and auctions of two- and five-year U.S. Treasury notes, traders said.

“Players came to sit on the fences” to see the results of the Bank of Japan’s Policy Board meeting Monday-Tuesday and the Federal Reserve’s Federal Open Market Committee meeting Tuesday-Wednesday, a currency broker said.

U.S. President Joe Biden’s speech slated for Wednesday is also being watched closely, the broker added.

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