Business / Financial Markets | CURRENCY MARKET

Dollar softens to around ¥106.20 in Tokyo amid lack of trading pegs

JIJI

The dollar eased to levels around ¥106.20 in quiet trading in Tokyo Friday.

At 5 p.m., the dollar stood at ¥106.16-20, down slightly from ¥106.24-25 at the same time Thursday. The euro was at $1.1085-1086, down from $1.1147-1148, and at ¥117.68-69, down from ¥118.44-45.

Except for a surge that topped ¥106.20 on real demand-backed buying in late morning trading, the dollar moved in a tight range below that level in search of direction amid a dearth of fresh trading incentives.

“The dollar-yen pair’s topside was capped by a fall in long-term interest rates in the United States while its downside was supported by strong U.S. economic indicators,” said an official at a foreign-exchange margin trading firm.

Trading became subdued as attention shifted to key events next week, including a speech by U.S. Federal Reserve Chairman Jerome Powell on Tuesday, an official at another foreign-exchange margin trading firm pointed out.

“A focal point is whether or not the Fed chief will mention something about future easing,” the official said.