US Dollar Hits 6 Year High Versus Yen Despite Soft NFP

The U.S. dollar hit its highest level in nearly six years against the yen on Friday in Tokyo on growing optimism that a U.S. Labor Department report due later in the day will confirm strength in the world’s largest economy.

At 5 p.m., the dollar fetched 105.24-26 yen compared with 105.21-31 yen in New York and 104.94-95 yen in Tokyo at 5 p.m. Thursday, after briefly rising to 105.71 yen, a level last seen in October 2008. Its lowest quote for the day was 105.23 yen, changing hands most frequently at 105.56 yen.

The euro was quoted at $1.2937-2938 and 136.15-19 yen against $1.2940-2950 and 136.20-30 yen in New York and $1.3142-3143 and 137.92-96 yen in Tokyo late Thursday afternoon.

The dollar hit the peak against the yen on Friday morning, retaining momentum from overnight in New York, where data on the U.S. service sector in August and a private jobs report supported the upbeat outlook and fed expectations of rises in U.S. long-term interest rates.

“Economic indicators coming from the United States in the third quarter have all been very strong,” said Toru Moritani, chief market economist at Sumitomo Mitsui Banking Corp. “Currency traders are expecting the dollar’s uptrend against the yen to continue.”

via Mainichi

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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