Business / Financial Markets | CURRENCY MARKET

Dollar lifted by position-squaring purchases, topping ¥108 in Tokyo

JIJI

The dollar rose above ¥108 in Tokyo trading Friday, lifted by position-squaring purchases amid a growing wait-and-see mood before the U.S. Labor Department’s release of its employment report for June.

At 5.p.m., the dollar stood at ¥108.05-05, up from ¥107.78-83 at the same time Thursday. The euro was at $1.1267-1267, down from $1.1283-1283, and at ¥121.74-75, up from ¥121.64-65.

After struggling for direction around ¥107.80 in the dearth of trading incentives due to the Fourth of July holiday in the United States, the dollar attracted midmorning buying for settlement purposes.

In the late afternoon, the greenback was pushed up further by “speculators’ purchases to square their dollar-short positions,” an official at a major securities firm said.

Market players “refrained from active transactions” to wait for the closely watched jobs report, due out later on Friday, a major Japanese bank official said.

“If the nonfarm payroll increase is slightly weaker than the market consensus of 150,000-160,000, it will be the best result for the dollar because U.S. interest rate hike expectations will be left intact,” the official noted.