The dollar was firmer around ¥108.30 in late Tokyo trading on Friday, backed by higher stock prices and demand from Japanese importers.
At 5 p.m., the dollar stood at ¥108.33-33, up from ¥107.92-92 at the same time on Thursday. The euro was at $1.1525-1526, down from $1.1540-1540, and at ¥124.86-86, up from ¥124.57-57.
The dollar briefly topped ¥108.50 in overseas trading overnight, as expectations for further monetary tightening by the U.S. Federal Reserve grew after Fed Chairman Jerome Powell said the U.S. central bank’s balance sheet would become substantially smaller, traders said.
In Tokyo, the dollar rose above ¥108.40 in the midmorning on real demand-backed buying by Japanese importers. The Nikkei stock average’s rebound also underpinned the dollar.
But the greenback broke the ¥108.30 line in the wake of U.S. President Donald Trump’s remarks indicating his continued eagerness to construct the Mexican border wall by declaring a state of emergency.
In late trading, position-adjustment buybacks emerged ahead of the three-day weekend in Japan, a Japanese bank official said.