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Dollar stronger around ¥111 in late Tokyo trading

JIJI

The dollar was firmer around ¥111 in Tokyo trading late Monday, supported by robust U.S. jobs data released late last week.

At 5 p.m. the dollar stood at ¥110.99, up from ¥110.74 at the same time Friday. The euro was at $1.1566, down from $1.1644, and at ¥128.37, down from ¥128.95.

The dollar moved around ¥111.00-10 in early trading, after attracting purchases overseas late last week due to a solid reading of the average hourly earnings in the U.S. jobs report for August, traders said.

After falling below ¥110.90 and then recovering the ¥111 line in the morning, the greenback moved on a weaker note in afternoon trading before rising back to around ¥111 in late hours.

“The dollar’s topside versus the yen has become heavy,” reflecting concerns over the course of punitive duties by the administration of U.S. President Donald Trump on Chinese products and U.S. trade policy toward Japan, an official at a brokerage firm-linked think tank said.

The official also said, “An upward pressure on the yen is growing” as the currencies of emerging economies met with selling against the Japanese unit.

On Monday, the benchmark 225-issue Nikkei average closed higher for the first time in seven sessions. But the Nikkei’s advance “failed to push up the dollar against the yen as its gain was limited,” a currency broker said.