TOKYO (AP) – The dollar was almost flat against the yen Wednesday in Asia as traders adjusted their positions amid mixed sentiment over the Japanese central bank’s monetary policy.
The dollar was trading at 118.02 yen by mid-afternoon in Tokyo, down 0.07 yen from late Tuesday. The euro rose to US$1.1975 from US$1.1973 in New York.
Traders said U.S. hedge funds and Japanese securities firms bought dollars for yen, helping the U.S. unit climb back above 118.00 yen to hit an intraday high of 118.13 yen on EBS, after briefly dipping to a low of 117.54 yen.
But the U.S. currency failed to extend much gains as traders were cautious of selling yen too actively on lingering speculation that Bank of Japan Governor Toshihiko Fukui may express more hawkish views about ending Japan’s ultra-easy monetary policy when he meets the press on Thursday, traders said.
