Business / Financial Markets | CURRENCY MARKET

Dollar rises above ¥106.60 in Tokyo trading as players await Fed chief's comments

JIJI

The dollar topped ¥106.60 in Tokyo trading on Friday ahead of a closely watched financial symposium in Jackson Hole, Wyoming.

At 5 p.m., the dollar stood at ¥106.63-64, up from ¥106.44-44 at the same time Thursday. The euro was at $1.1068-1069, down from $1.1104-1105, and at ¥118.03-04, down from ¥118.20-21.

After advancing to around ¥106.60 in midmorning trading on the back of buying by Japanese importers, the dollar later slid to around ¥106.50 after selling on a rally.

In the afternoon, the greenback regained steam to surpass ¥106.60 again, supported by rises in the key Nikkei average on the Tokyo Stock Exchange and long-term U.S. Treasury bond yields.

While market participants are keenly waiting to see what Federal Reserve Chairman Jerome Powell says at a financial symposium in Jackson Hole, Wyoming, later Friday, expectations for a further interest rate cut by the U.S. central bank receded after some Fed officials made remarks deemed negative about the possibility of additional easing, market sources said.

“As the Fed officials have clearly stated that the central bank does not have to ease its policy further now, it’s hard to believe that an additional interest rate reduction” is backed by a consensus in the Fed, an official at a major securities firm said.

Dollar buying could increase, depending on the content of Powell’s speech, the official added.

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