On Friday in Tokyo, the dollar hovered in a narrow range of around 109.40 yen.
At 17:00, the dollar was trading at 109.42 yen, up from 109.54 yen at the same time on Thursday. The euro was worth $ 1.2182 versus $ 1.2160 and 133.31 yen versus 133.21 yen.
In overseas trading on Thursday, the dollar climbed to 109.80 yen following a surge in long-term US Treasury yields, fueled by a faster-than-expected rise in the US CPI for May, which was announced the same day. But later, the dollar fell to around 109.30 yen on lower Treasury yields.
After rising above 109.30 yen in early trading in Tokyo on Friday, the dollar surpassed 109.40 yen by mid-morning on the back of buying from demand-supported real players.
The purchase was short-lived, however, as Treasury yields remained low outside business hours.
Trading in the dollar-yen was sluggish in the afternoon due to the lack of new stimulus. At the end of the trading session, the American currency showed relatively wild fluctuations due to corrective movements ahead of the weekend.
According to the foreign exchange broker, the movement of the dollar after the release of the CPI data demonstrates the reluctance of investors to drive it up, adding that at the moment the dollar is unlikely to attract serious purchases against the background of a downtrend in long-term interest rates in the United States.
Meanwhile, the depreciation of the American currency was steady in the area of 109.20 yen, so the dollar-yen pair remains undirected as a result, according to market sources.
The dollar is expected to remain in a limited range against the yen until the two-day US Federal Reserve monetary policy meeting before Wednesday, the foreign exchange broker said.
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