Dollar firmer around ¥111.40 on higher stock prices, U.S. long-term interest rates

The dollar rose to around ¥111.40 in Tokyo trading on Friday, aided by higher stock prices and U.S. long-term interest rates.

At 5 p.m., the dollar stood at ¥111.46-46, up from ¥110.91-92 at the same time Thursday. The euro was at $1.1138-1140, up from $1.1132-1132, and at ¥124.15-17, up from ¥123.46-48.

The dollar was solid around ¥111.30-40 in early trading, after attracting buybacks in overseas trading overnight on the back of favorable readings in U.S. economic data, including weekly initial jobless benefit claims.

“The good economic data prompted buybacks of the dollar,” a Japanese bank official said.

After falling to around ¥111.10 later in the morning, the greenback rose above ¥111.40 thanks to a rebound in Tokyo stock prices, a rise in U.S. long-term interest rates in off-hours trading and buying from real demand-backed players, market sources said.

“The dollar drew purchases for position adjustment before the weekend,” an official at a currency brokerage firm said.

One market source said that the dollar’s topside is expected to be limited for now.

“Market players see no immediate need for buying the dollar actively,” an official at a foreign exchange margin trading service firm said, referring to lingering concerns over the administration of U.S. President Donald Trump, including allegations about shady relations with Russia.

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