USDJPY Rises on Strong US Data

The dollar rose to levels around ¥101.90 in Tokyo trading late Friday after receiving support from brisk U.S. economic data in overseas trading Thursday.

At 5 p.m., the dollar was quoted at ¥101.89-90, up from ¥101.44-45 at the same time on Thursday. The euro stood at $1.3464-3466, down from $1.3472-3473, and at ¥137.19-23, up from ¥136.68-70.

The U.S. Labor Department said Thursday that the country’s weekly initial jobless claims totaled 284,000, the lowest since February 2006. The data helped push down U.S. long-term interest rates and sparked dollar purchases.

Following the positive overseas developments, the dollar moved on a firmer note above ¥101.70 in early trading in Tokyo, traders said.

Also supported by higher Japanese stock prices, the greenback held steady vis-a-vis the yen. Even though the dollar faced real demand-backed selling toward midmorning, the negative impact was offset by dollar buybacks, according to traders.

In late trading, the dollar added gains apparently because market players grew reassured after seeing the dollar’s stable movements throughout the day’s trading, a currency market broker said.

But the U.S. currency stopped short of retaking ¥102. An official at a foreign brokerage house said, “Large amounts of dollar-selling orders are lined up around ¥101.90.”

via Japan News

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza