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The dollar rose to around ¥108.30 in Tokyo trading Tuesday, chiefly thanks to position-squaring buying ahead of the Federal Reserve’s Federal Open Market Committee meeting.

At 5 p.m., the dollar stood at ¥108.32, up from ¥107.71 at the same time Monday. The euro was at $1.2069, down from $1.2097, and at ¥130.75, up from ¥130.30.

As in overseas trading the previous day, the dollar attracted buying to square positions and take profits before the start of the two-day FOMC meeting through Wednesday.

But the greenback failed to top ¥108.40, blocked by Japanese importers’ sell orders lining up in the middle of ¥108 terrain.

The dollar slightly eased as some players sold back the U.S. currency after the Bank of Japan said no change was made in the central bank’s easing policy during its two-day Policy Board meeting from Monday, although there was no surprise in the policy decision, market sources said.

After going sideways in a range below ¥108.30, the dollar firmed in the wake of a rise in U.S. long-term interest rates in off-hours trading.

A trust bank official expressed willingness to see how the Fed would signal tapering.

Besides the FOMC meeting, U.S. President Joe Biden’s congressional speech scheduled for Wednesday is attracting investor attention.

The speech is expected to help players analyze U.S. financial and economic policy management and predict the dollar-yen pair’s direction, a currency broker noted.

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