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The dollar gave up earlier gains to move around ¥108.70 in Tokyo trading late Monday.

At 5 p.m., the dollar stood at ¥108.75, up from ¥108.69 at the same time Friday. The euro was at $1.2197, down from $1.2216, and at ¥132.64, down from ¥132.79.

The dollar traded at around ¥109.00 in foreign trading Friday on a better-than-expected U.S. purchasing managers’ index for May released by British financial data provider IHS Markit.

The greenback moved narrowly in morning trading in Tokyo, propped up by buying from Japanese importers for settlement purposes but capped by profit-securing selling.

A fall in U.S. long-term interest rates in off-hours trading led to a sell-off of the dollar in the afternoon vis-a-vis many major currencies.

The effects of a rise in the euro and the pound against the dollar pushed the greenback further lower versus the yen in late trading.

As hopes of U.S. economic recovery balloon on the back of progress in COVID-19 vaccinations, investors are “closely watching when the U.S. Federal Reserve will begin fully considering tapering quantitative monetary easing,” an official at a Japanese bank said.

A currency broker noted that the unstable movements of cryptocurrencies such as bitcoin is “chilling investor sentiment.”

An official at a foreign exchange margin trading service firm said that the currency market is expected to be influenced by U.S. interest rates, prices of stocks and commodities and economic indicators.

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