The dollar weakened to around ¥110.50 in lackluster Tokyo trading Wednesday.
At 5 p.m., the dollar stood at ¥110.54, down from ¥110.69 at the same time Tuesday. The euro was at $1.1900, down from $1.1909, and at ¥131.55, down from ¥131.83.
The dollar rose close to ¥110.60 toward midmorning on buying by Japanese importers for settlement purposes but turned south on the 225-issue Nikkei average’s decline and selling by domestic exporters.
In the afternoon, the dollar was stuck in a tight range around ¥109.50, amid a growing wait-and-see mood ahead of closely watched private- and public-sector U.S. jobs reports for June, due out later in the day and Friday, respectively.
“As Tokyo stocks and U.S. long-term interest rates turned standstill, the dollar-yen pair lost momentum,” a major bank official said.
The Bank of Japan’s plan to trim the amount of long-term Japanese government bonds it will purchase, announced Tuesday, has also dampened buying sentiment for the dollar, a currency broker said.
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