The dollar moved on a firm note around ¥109 in Tokyo trading Monday, supported by rises in stock prices and U.S. interest rates.
At 5 p.m., the dollar stood at ¥108.91, down from ¥109.14 at the same time Friday. The euro was at $1.2147, up from $1.2076, and at ¥132.30, up from ¥131.81.
After plunging below ¥108.40 yen in pre-weekend overseas trading in the wake of the release of weaker-than-expected U.S. nonfarm payroll growth in April, the dollar rebounded to around ¥108.90 in Tokyo morning due to active buying by Japanese importers for settlement purposes.
The 225-issue Nikkei average’s further advance and a rise in U.S. long-term interest rates also encouraged players to buy the greenback.
In the afternoon, the dollar initially lacked vigor amid a dearth of fresh trading incentives but resumed gathering steam as crude oil futures’ went up. The U.S. currency topped ¥109.00 around 4 p.m., traders said.
The disappointing U.S. jobs increase has not changed at all the view that “the U.S. economy is on the recovery path” thanks to the progress of coronavirus vaccinations, a Japanese bank official said.
A currency broker said the dollar has been supported by a solid U.S. stock market reflecting the prospect of the Federal Reserve prolonging quantitative easing.
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