The U.S. dollar is likely to be firm against the yen in Tokyo next week as uncertainty over Japan's politics and economy continues to restrain the currency, dealers said.
"The fact remains that there is still no good news coming out of Japan. The dollar will be well supported," said Kimihiko Tomita, head of foreign exchange sales at Chase Manhattan Bank in Tokyo. Many dealers said they expect the dollar to move between 121 yen and 125 yen.
The dollar rose to the week's high of 124.80 yen last Monday but fell to 121.10 yen Friday, its lowest level in Tokyo since mid-March. At 5 p.m. Friday, the U.S. currency fetched 121.92-95 yen compared with 124.23-26 the same time the week before.