The dollar fell below ¥112.30 in Tokyo trading late Wednesday, reflecting a drop in U.S. long-term interest rates.
At 5 p.m., the dollar stood at ¥112.28-28, down from ¥112.55-55 at the same time on Tuesday. The euro was at $1.1826-1826, up from $1.1765-1766, and at ¥132.79-80, up from ¥132.42-42.
The dollar rose to around ¥112.30-40 in early trading after briefly slipping below ¥112 overseas. The U.S. currency climbed to around ¥112.60 in midmorning trading, helped by a rebound in the benchmark Nikkei 225 from earlier losses and an advance in U.S. long-term interest rates in off-hours trading, traders said.
But the dollar’s topside was capped toward noon and fell back to around ¥112.40 in the afternoon amid a lack of fresh incentives. The dollar slipped below ¥112.30 late in the afternoon after moving narrowly around ¥112.30-40.
An official at a major Japanese bank said that traders found it difficult to step up dollar purchases amid lingering concern over the situation related to North Korea.
An official at a foreign exchange margin trading service firm said market participants are unlikely to be active in trading until news comes out about U.S. tax reform plans and the appointment of the next U.S. Federal Reserve chair.