Dollar Rebounds to 156 Yen After Brief Drop
The US dollar rebounded to the 156 yen range in Tokyo on Friday after a brief drop to the lower 155 yen level. The currency had plummeted overnight in New York, falling over 3 yen from its previous day's value following remarks by Federal Reserve Governor Christopher Waller that suggested holding interest rates steady if future data confirm a slowdown in inflation.
The dollar trimmed its losses on position adjustments and profit-taking ahead of the release of US nonfarm payrolls later in the day. Elevated crude oil futures also supported sentiment, allowing the currency to recover some ground.
According to Yuzo Sakai, chief manager of business planning at Ueda Totan Forex Ltd., 'As the dollar weakened by around 5 yen after topping the 160 line in this week, dip-buying on the dollar emerged as (traders) viewed the decline as excessive.'