The dollar traded in a narrow range around ¥110.20 in Tokyo trading on Monday, amid a wait-and-see mood before key economic events later this week.
At 5 p.m., the dollar stood at ¥110.19-20, down from ¥110.31-32 at the same time Friday. The euro was at $1.1220-1221, up from $1.1189-1189, and at ¥123.65-66, up from ¥123.44-44.
After moving around ¥110.30-40 in early trading, the dollar briefly slipped below ¥110.20 as Japanese stocks extended losses.
But the dollar rose back above ¥110.20 as stocks cut some of their early losses. The dollar was also supported by a rise in U.S. long-term interest rates in off-hours trading, market sources said.
The dollar was basically stuck in a tight band due to a lack of major trading incentives, the sources said.
“The dollar-yen pair is unlikely to find a decisive direction for now” ahead of monetary policy meetings in the United States and Japan later this week, an official at a currency broker said.
“The dollar is expected to stay in a narrow range around ¥110” until after the U.S. Federal Reserve’s policy meeting, an official at a major securities house said.
Fed policymakers are set to meet Tuesday and Wednesday, to be followed by a two-day meeting of the Bank of Japan scheduled to start Thursday.