Business / Financial Markets | CURRENCY MARKET

Dollar holds around ¥107 in Tokyo on strong U.S. data, optimistic political news abroad

JIJI

The dollar moved firmly around ¥107 in Tokyo trading late Friday after a bout of directionless trading.

At 5 p.m., the dollar stood at ¥106.97-98, up from ¥106.51-52 at the same time on Thursday. The euro was at $1.1046-1047, up from $1.1038-1041, and at ¥118.17-18, up from ¥117.58-59.

After moving around ¥107 in the early morning, buoyed by strong U.S. economic data, the dollar firmed around ¥107.00-10 in the morning, helped by a climb in the benchmark 225-issue Nikkei stock average.

The greenback moved around ¥106.90 in the afternoon, slightly pressured by position-adjusting selling.

“In addition to the clearing up of uncertainties in (areas) other than the economy, such as the Hong Kong situation, the political situation in Britain and the U.S.-China trade war, (market players) were able to confirm the firmness of U.S. personal consumption, which makes up the majority of the country’s economy,” an official at a life insurance firm said.

“We can’t let our guard down yet, as we don’t know what U.S. President Donald Trump will say at a time like this,” an official at a Japanese bank warned.

The official noted that the market is focused on the release of the U.S. government’s employment statistics for August and a debate session involving U.S. Federal Reserve Chairman Jerome Powell. Both events are scheduled to take place later on Friday and could boost the dollar above its current range of ¥105-107.

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