Business / Financial Markets | CURRENCY MARKET

Dollar recovers to around ¥107.70 in Tokyo after dive abroad

JIJI

The dollar pared losses to meander around ¥107.70 in Tokyo trading Friday, thanks to continued buybacks.

At 5 p.m., the dollar stood at ¥107.64-64, slightly lower than ¥107.76-76 at the same time Thursday. The euro stood at $1.1264-1264, up from $1.1239-1239, and at ¥121.25-26, up from ¥121.11-12.

In overnight trading overseas, the dollar fell down to around ¥107.20 after remarks by Federal Reserve Bank of New York President John Williams were taken to indicate the Federal Open Market Committee would move to cut interest rates in a meeting at the end of the month. But the Fed’s subsequent denial of the link between the remarks and the policy-setting meeting prompted dollar repurchases.

In Tokyo, the dollar continued to shed losses thanks to buying by investors heartened by the sharp rebound in the Nikkei stock average, sending it above ¥107.70 at one point, traders said.

“Heightened expectations for a U.S. interest rate cut do not necessarily lead to dollar selling against the yen,” a think tank official said.