The dollar continued to climb in Tokyo trading Friday, rising to around ¥104.00 on gains in the benchmark 225-issue Nikkei average and U.S. long-term interest rates.
At 5 p.m., the dollar stood at ¥103.97, up from ¥103.36 at the same time Thursday. The euro was at $1.2237, down from $1.2311, and at ¥127.23, slightly down from ¥127.25.
In morning trading, the dollar climbed to around ¥104.00, bolstered by rises in the Nikkei average and U.S. interest rates.
But the greenback soon met with selling to lock in profits, sinking to around ¥103.80.
The U.S. currency rose again in the afternoon as the Nikkei average and U.S. interest rates rose further, and a fall of the euro also pushed up the dollar against the yen in late trading.
Market players are focusing their attention on U.S. employment statistics due to be released later on Friday, with many predicting a rise in the unemployment rate.
“If the worsening of labor conditions is confirmed, it may lead to a decline in interest rates, tipping the dollar downward,” an official at a Japanese bank said.
The rise in U.S. long-term interest rates stemmed from expectations that the Democratic Party’s control of the U.S. presidency and both chambers of Congress will lead to larger fiscal spending, which will prop up the economy.
“It may also have been affected by a statement by Charles Evans, president of the Federal Reserve Bank of Chicago, suggesting the possibility of the Federal Reserve decreasing its bond-buying activities,” another Japanese bank official said.
In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.