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The dollar hovered on a firmer note around ¥109 in Tokyo trading Wednesday.

At 5 p.m., the dollar stood at ¥109.07, up slightly from ¥108.96 at the same time Tuesday. The euro was at $1.2221, up from $1.2202, and at ¥133.30, up from ¥132.96.

The dollar was lifted above ¥109.00 by Japanese importers’ buying for settlement purposes in midmorning trading but slipped through the line following a drop in U.S. long-term interest rates.

After being stuck in a tight range amid a lack of market-moving factors, the greenback firmed back into ¥109 territory as the 10-year Treasury yield rebounded to top 1.65%.

But the dollar’s rise was limited amid a growing wait-and-see mood ahead of the release later in the day of the minutes of the U.S. Federal Reserve’s April 27-28 Federal Open Market Committee meeting.

“The Fed’s policy stance is attracting market attention,” a Japanese bank official said.

Although the dollar has turned easier since senior Fed officials suggested that U.S. price rises are temporary, “the dollar-yen pair cannot show big moves” because both the dollar and yen are prone to be sold against the euro amid expectations for coronavirus vaccination progress to bring about an early economic recovery in Europe, a currency broker said.

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