The dollar was modestly above ¥114 in late trading on Thursday amid position-adjustment flows following its rally earlier this week and ahead of Friday’s release of U.S. jobs data.
At 5 p.m., the dollar stood at ¥114.13-14, compared with ¥114.24-25 at the same time Wednesday. The euro was at $1.0868-0868, against $1.0859-0861, and at ¥124.05-06, against ¥124.07-08.
The dollar was weaker around ¥113.50 in the early morning, pressured by selling to lock in profits, with the psychologically important line of ¥115 coming in sight, traders said.
In New York trading overnight, the greenback climbed as high as ¥114.56 following a stronger-than-expected reading in Automatic Data Processing Inc.’s U.S. private-sector jobs report for February, but it later sagged below ¥113.50 due to bouts of position-adjustment selling.
In Tokyo, the dollar was in turn shored up by position-adjustment buybacks against a backdrop of firmer Japanese and Chinese share prices.
Market participants are now focusing on the U.S. government’s broader employment report for February, to be released on Friday.
“There have been advanced purchases (of the dollar) in the bet of solid readings in the jobs data,” as well as the U.S. Institute for Supply Management’s nonmanufacturing business index for the month, due Thursday, said an foreign exchange broker.