Business / Financial Markets | CURRENCY MARKET

Dollar stronger around ¥110 in Tokyo


The dollar was slightly stronger around ¥110 in Tokyo trading Monday thanks to brisk U.S. jobs data, but its upside was limited due to sell-offs in Tokyo stocks.

At 5 p.m., the dollar stood at ¥109.91, up from ¥109.77-81 at the same time Friday. The euro was at $1.2439-2440, down from $1.2508-2512, and at ¥136.72-73, down from ¥137.31-38.

Dollar buying took the upper hand in early trading in Tokyo after U.S. long-term interest rates rose late last week, on the back of stronger-than-expected growth in nonfarm payrolls and a steep rise in wages shown in U.S. jobs data for January, pushing up the dollar to levels close to ¥110.30.

But the U.S. currency slipped below ¥109.80 later in the morning, reflecting a plunge in Tokyo stocks.

In the afternoon, the dollar rebounded to around ¥110.10 thanks to buybacks as stocks showed some resilience. It fluctuated around ¥110 in late trading.

The dollar’s firmness also reflected remarks by Bank of Japan Gov. Haruhiko Kuroda signaling his intention to continue the central bank’s current accommodative monetary policy, traders said.

Kuroda said at a parliamentary session Monday that the BOJ needs to continue patiently its strong monetary easing measures as it still has halfway to go before achieving its 2 percent inflation target.

A foreign exchange broker said, however, that market participants found it difficult to step up dollar purchases before seeing the U.S. stock market’s movements on Monday. On Friday, U.S. equities met with heavy selling due to speculation over faster interest rate hikes by the U.S. Federal Reserve.