News Column

Dollar Hits 5-Year High Against Yen

December 20, 2013

Japan Economic Newswire

yen
Japanese yen (file photo)

TOKYO, Dec. 20 -- (Kyodo) _ The U.S. dollar hit a five-year-and-two-month high Friday in Tokyo in the mid-104 yen zone on rises in U.S. Treasury yields following the U.S. Federal Reserve's decision to scale back its quantitative easing.

At 5 p.m., the dollar fetched 104.42-43 yen compared with 104.19-29 yen in New York and 103.96-97 yen in Tokyo at 5 p.m. Thursday after briefly rising to 104.60 yen, its highest level since October 2008. Its lowest quote for the day was 104.22 yen, changing hands most frequently at 104.47 yen.

The euro was quoted at $1.3627-3629 and 142.30-34 yen against $1.3656-3666 and 142.35-45 yen in New York and $1.3688-3689 and 142.30-34 yen in Tokyo late Thursday afternoon.

The dollar remained firm during Tokyo trading on expectations for a wider gap between U.S. and Japanese interest rates after the 10-year U.S. Treasury yield rose above 2.9 percent.

"Rises in the U.S. Treasury yields led to the dollar's rise," said Yuji Kameoka, chief foreign exchange strategist at Daiwa Securities Co.

"Market participants are now keeping an eye on developments in stock markets and movements in interest rates," said Toru Moritani, chief market economist at Sumitomo Mitsui Banking Corp.

The Bank of Japan on Friday decided to keep intact its aggressive monetary easing at its two-day meeting, compared with the U.S. Federal Reserve which decided to begin scaling down its monetary stimulus program.

(c) 2013 Kyodo News International, Inc.

Original headline: Dollar hits 5-year high in mid-104 yen on higher U.S. Treasury yields



Source: (c) 2013 Kyodo News International, Inc.