LONDON: The U.S. dollar traded in the lower 120 yen zone Tuesday morning in a subdued Tokyo market just ahead of the Bank of Japan’s release of the outcome of its policy meeting.
At noon, the dollar fetched 120.30-32 yen compared with 120.18-28 yen in New York and 120.15-17 yen in Tokyo at 5 p.m. Monday.
The euro was quoted at $1.1319-1319 and 136.17-19 yen against $1.1310-1320 and 136.03-13 yen in New York and $1.1336-1339 and 136.22-26 yen in Tokyo late Monday afternoon.
The dollar briefly rose to the upper 120 yen level on the back of somewhat improved risk appetite due to a rise in Tokyo stocks as well as purchases by Japanese importers, before losing the gains in the late morning session, dealers said.
The U.S. currency failed to maintain its strength as it “just recouped its losses (against the yen) made the previous day” without major buying incentives, said Shinichiro Kadota, foreign exchange strategist at Barclays Bank. Overnight in New York, it fell into the 119 yen zone at one time.
