The U.S. dollar extended gains against the Japanese yen in Asia trade Friday, as dip-buying kicked in after it tumbled overnight to its lowest level in nearly two months.
The dollar USDJPY, +0.11% was at ¥119.17, compared with ¥118.91 late Thursday in New York. The U.S. currency hit as low as ¥118.06 overnight, its lowest level since Aug. 24, amid expectations among investors the Federal Reserve might wait longer to start raising short-term rates.
“We can see strong appetite for [dip]-buying,” said Mizuho Securities chief foreign-exchange strategist Kengo Suzuki, adding that the dollar was well supported against the yen, with investors covering their short positions.
Even after downbeat U.S. jobs data earlier this month reduced the odds of a Fed rate increase this year, the dollar was rangebound against the yen, hovering between ¥119 and ¥121 since late August.
