The dollar moved in a narrow range around ¥109.40 in Tokyo on Friday.
At 5 p.m., the dollar stood at ¥109.42, down from ¥109.54 at the same time Thursday. The euro was at $1.2182, up from $1.2160, and at ¥133.31, up from ¥133.21.
In overseas trading Thursday, the dollar went up close to ¥109.80 following a rise in long-term U.S. Treasury bond yields triggered by a faster-than-expected increase in the U.S. consumer price index for May, announced on the day. But the dollar fell to around ¥109.30 later due to a downturn in the Treasury yields.
After moving above ¥109.30 in early Tokyo trading Friday, the dollar topped ¥109.40 in the midmorning on buying by real demand-backed players.
The bout of buying, however, was short-lived as the Treasury yields remained low in off-hours trading.
Dollar-yen trading was lackluster in the afternoon amid a lack of fresh incentives. In late trading, the U.S. currency showed relatively wild swings on position-adjusting moves before the weekend.
The movements of the dollar following the CPI data release showed investors’ reluctance to chase it higher, a currency broker said, adding that the dollar is unlikely to attract hefty buying for now amid the downtrend of U.S. long-term interest rates.
Meanwhile, the U.S. currency’s downside has been firm around ¥109.20, so the dollar-yen pair remains directionless as a result, market sources said.
The greenback is expected to continue to be range-bound versus the yen until the U.S. Federal Reserve’s two-day monetary policy meeting through Wednesday, the currency broker said.
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