Dollar higher

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TOKYO: The dollar hovered near a 3-1/2-month high versus the yen on Friday, after making big gains overnight as the markets prepared for a Donald Trump presidency that could stimulate the U.S. economy fiscally and lift interest rates.

The U.S. currency dipped slightly to 106.610 yen after surging to 106.950 yen overnight, its highest since July 21. The greenback was set to end the week with a 3.3 percent gain against its Japanese peer, which was initially expected to emerge on the winning end due to its perceived safe-haven status upon a Trump victory in the U.S. presidential elections.

The fast pace of the dollar´s appreciation against the yen prompted a response from Japan´s Finance Minister Taro Aso, usually known to make statements when the currency pair moves in the opposite direction.

"It is exceptional for the yen to move 5 yen (against the dollar) in two days," he told reporters, stressing the importance of market stability.

The dollar had slumped briefly towards 101 yen on Wednesday when the Republican candidate, feared by the markets as an unknown entity, edged out Democrat Hillary Clinton.