In trading on Wednesday in Tokyo, the dollar fell to levels below 110 yen amid lower long-term interest rates in the US.
At 17:00, the dollar was trading at 109.78-79 yen, up from 110.29-29 yen at the same time on Tuesday. The euro was valued at USD 1.1878-1878 versus USD 1.1818-1819 and Y130.41-42 versus Y130.36-37.
After falling to about Y109.70 in overnight trading in response to the 10-year US Treasury yield falling to 1.65%, the dollar rose amid purchases by Japanese importers for early morning settlement.
The dollar fell below 109.60 yen in mid-morning trading, traders said on the back of sales from domestic exporters and foreign short-term players.
But the dollar soon regained its losses and, during quiet trading, went into the side zone in the area of 109.70 yen.
According to traders, due to the small number of fresh events affecting the market, players stepped aside to wait for publication later, on the day of the minutes of the US Federal Reserve meeting, March 16-17.
“The dollar has been very heavy since it didn’t hit 111 yen last week,” the foreign exchange broker said.
However, the US currency “could maintain its underlying strength even if it undergoes some minor adjustments” amid unrelenting hopes for a speedy recovery in the US economy thanks to the rapid rollout of the coronavirus vaccine, a Japanese bank official said.
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yen, euro, dollar