Dollar moves tightly around ¥112.70 in Tokyo

The dollar traded in a narrow range mostly around ¥112.70 in Tokyo on Thursday, lacking a clear direction in the absence of fresh trading incentives.

At 5 p.m., the dollar stood at ¥112.69-69, up from ¥112.52-52 at the same time on Wednesday. The euro was at $1.1771-1771, up from $1.1758-1758, and at ¥132.65-66, up from ¥132.29-29.

The dollar rose to around ¥112.90 in early trading, attracting buybacks thanks to favorable U.S. economic data released overnight. Among them, the U.S. Institute for Supply Management’s nonmanufacturing activity index for September rose to the highest level in about 12 years.

But the dollar failed to extend gains and fell back to around ¥112.70, pressured by selling on a rally and the top-heaviness of Tokyo stock prices.

While the dollar’s downside was solid following the overnight release of the strong U.S. economic data, market participants found no fresh incentives to buy the greenback now, market sources said.

“The dollar faced a wave of selling on a rebound at levels above ¥113,” an official at a foreign exchange margin trading service firm said.

In late hours, the dollar was stuck in a tight range around ¥112.70, with investors refraining from active trading before the release on Friday of the U.S. government’s closely watched jobs data for September.

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