Business / Financial Markets | CURRENCY MARKET

Dollar firmer above ¥108.40 in late Tokyo trading


The dollar was firmer around ¥108.40 in Tokyo trading late Friday, but its movements were limited.

Market players retreated to the sidelines to see developments in U.S. tariff talks with Mexico as well as U.S. government jobs data for May, due later on Friday.

At 5 p.m., the dollar stood at ¥108.46, up from ¥108.23 at the same time Thursday. The euro was at $1.1262, up from $1.1231, and at ¥122.15, up from ¥121.57.

The dollar’s firmness was a result of a media report that the United States is considering postponing tariffs on imports from Mexico, traders said.

A rise in Japan’s Nikkei stock average gave another lift to the dollar by driving up risk appetite, they said.

“The dollar remains supported by higher stock prices stemming from expectations for an interest rate cut in the United States, but players find it difficult to move either way amid uncertainty about U.S. tariffs on Mexico,” an official at a major Japanese securities house said.

“The dollar’s downside is solid, and it’d be no surprise to see it rise above ¥108.90 if positive news comes out,” an official of a major Japanese bank said.