The dollar erased early gains on profit-taking to move at levels slightly lower than ┬е110.90 in Tokyo trading Thursday.
At 5 p.m., the dollar stood at ┬е110.87, almost unchanged from ┬е110.87 at the same time Wednesday. The euro was at $1.1932, down from $1.1938, and at ┬е132.30, down from ┬е132.36.
The dollar advanced to 15-month highs above ┬е111.10 toward midmorning on the back of higher U.S. long-term interest rates and strong demand from Japanese importers for settlements.
But selling to lock in gains soon gathered steam, pushing the greenback below ┬е110.90.
The dollar moved on a sluggish note in the afternoon amid a dearth of active purchases.
After the U.S. currency rewrote its year-to-date high against the yen, тАЬa sense of accomplishmentтАЭ grew among players, a currency broker said.
But now that Japanese and U.S. monetary policies have shown an explicit difference in their directions with the Bank of Japan sticking to massive easing and the Federal Reserve heading toward tapering, тАЬinvestors find it difficult to test the dollarтАЩs downside,тАЭ a Japanese securities firm official said.
Analysts also pointed out that all technical charts suggest the dollarтАЩs medium- to long-term ascent.
тАЬThe dollar-yen pairтАЩs trading range is expected to creep up for the time being,тАЭ a major domestic bank official said.
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