The dollar fell against the yen on Tuesday in Asia amid expectations that Japanese exporters will ramp up their repatriation of overseas profits ahead of the end of the fiscal year this weekend.
The greenback was at ¥94.17, down from ¥94.21 in New York on Monday. Traders said the dollar may fall further, possibly to as low as ¥93.50 later in the global day, as short-term speculators trade amid expectations of increased dollar-selling orders from Japanese companies as the end of the current fiscal year nears.
"We may see some fairly influential selling by exporters because their businesses should have performed well overseas, especially in the U.S. recently," said Takao Yahata, a group manager of forex at Mitsubishi UFJ Trust and Banking.
Any falls in the greenback should offer good opportunities to buy on dips, strategists said, as they continue to expect the dollar to rise in the long-term against its Japanese counterpart.
"Thanks to favorable U.S. economic conditions and policies to be implemented by Japanese Prime Minister Shinzo Abe, we expect the dollar will rise to ¥100 by the end of this year," said Deutsche Securities senior strategist Taisuke Tanaka.
Investors will be paying close attention to the Bank of Japan's 8301.JA -4.47% two-day policy-setting meeting starting April 3, as it is widely expected that the new head of the bank, Haruhiko Kuroda will likely implement bold easing measures as he launches his efforts to achieve a 2% inflation target in two years.
The euro, meanwhile, was at $1.2864 and ¥121.13 from $1.2854 and ¥121.01. The Wall Street Journal Dollar Index, which measures the dollar against a basket of currencies, was at 73.445 from 73.477.
