The dollar hovered around ¥109.10 on a weak note in Tokyo trading Friday, amid a growing wait-and-see mood ahead of the release of the U.S. government’s jobs report later the same day.
At 5 p.m., the dollar stood at ¥109.14-15, down from ¥109.33-33 at the same time Thursday. The euro was at $1.2076-2077, up from $1.2024-2025, and at ¥131.81-82, up from ¥131.46-47.
The dollar topped ¥109.10 in midmorning trading thanks to purchases by Japanese importers for settlement purposes and to the Nikkei stock average’s upswing.
But such dollar buying proved short-lived as resource-rich nations’ currencies appreciated on rises in crude oil and copper prices.
Players took to the sidelines in the afternoon to wait for the employment report for April, which was expected to show a substantial nonfarm payroll increase.
“Once the improved employment conditions are actually confirmed, market attention will shift to possible quantitative easing tapering by the U.S. Federal Reserve,” said an official at a foreign exchange margin trading service firm.
Meanwhile, a Japanese bank official said that “the chances are slim that the dollar will rise further” since U.S. long-term interest rates have stopped rising.
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