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Dollar Holds Near ¥160 as Strong U.S. Jobs Data Lifts Greenback

Robust May employment numbers pushed up expectations of further Federal Reserve rate increases and helped drive the dollar higher against the yen.

Overview

  • The dollar traded around ¥160.3 in New York and Tokyo sessions, with market quotations showing about ¥160.32–160.33 in early Tokyo trading on June 6.
  • By late New York trading on June 5 the dollar had strengthened to roughly ¥160.28–160.38 after May U.S. employment data came in firmer than expected.
  • Market participants said the jobs report increased expectations that the Fed will raise rates again this year, which made the dollar more attractive versus the yen.
  • A June 4 agreement to resume a ceasefire between Israel and Lebanon briefly encouraged investors to buy yen as a safer asset, but that move produced only small, short-lived yen gains.
  • Session-to-session moves have been modest, only a few tenths of a yen, and traders say the next big swings will most likely follow fresh U.S. data, shifts in Fed expectations, or new geopolitical developments.