The dollar fell back to levels a tad above ¥106 in Tokyo trading on Friday, after Bank of Japan Governor Haruhiko Kuroda reiterated that the BOJ will not use “helicopter money” as a monetary stimulus.
At 5 p.m., the dollar stood at ¥106.10-10, down from ¥106.82-83 at the same time Thursday. The euro was at $1.1025-1025, slightly down from $1.1032-1032, and at ¥116.98-99, down from ¥117.85-85.
The greenback drifted mostly in a range between ¥105.50 and ¥105.80, before topping ¥106 in late afternoon trading.
In overseas trading overnight, the U.S. currency slid close to ¥105.40 at one point following the remarks by Kuroda in a BBC radio interview.
Kuroda’s repeated denial of the use of helicopter money “triggered position-adjustment selling by players who were buying the dollar against the yen lately,” an official at a major Japanese bank said.
The dollar’s topside vis-a-vis the yen was also capped by pullbacks in Japanese and overseas shares, traders said.
Meanwhile, its downside was underpinned by hopes for a further monetary easing decision by the BOJ at a Policy Board meeting for two days from Thursday, they said.
Overall, a wait-and-see mood was strong ahead of the BOJ policy review and other key events, including a weekend meeting of top financial officials of the Group of 20 major and emerging economies in Shanghai and a two-day policy-setting meeting of the U.S. Federal Reserve from Tuesday.