The dollar weakened below ¥110.80 in Tokyo trading Friday, as players retreated to the sidelines ahead of the release of a key U.S. inflation gauge.

At 5 p.m., the dollar stood at ¥110.75-75, down from ¥110.87-88 at the same time Thursday. The euro was at $1.1947-1948, up from $1.1932-1932, and at ¥132.31-32, up slightly from ¥132.30-31.

The dollar rose close to ¥111 in midmorning trading on demand-backed buying by Japanese importers. But the greenback saw selling gradually increase later.

Investors were “disappointed” at the dollar’s failure to exceed the ¥111 threshold again, a Japanese bank official said.

A wait-and-see sentiment grew in the afternoon prior to the release later in the day of the U.S. personal consumption expenditures price index for May, traders said.

A currency broker noted that a fall in U.S. long-term interest rates in off-hours trading and dollar selling against the euro also led to the U.S. currency’s drop vis-a-vis the yen.

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