News Column

Dollar rises to mid-103 yen zone after overnight fall

January 23, 2014

TOKYO , Jan. 24 -- ( Kyodo ) _ The U.S. dollar rose to the mid-103 yen zone Friday morning in Tokyo after briefly falling into the upper 102 yen range overnight in New York on unease over the outlook for the Chinese economy. At noon, the dollar fetched 103.53-54 yen compared with 103.22-32 yen in New York and 104.34-35 yen in Tokyo at 5 p.m. Thursday . The euro was quoted at $1.3683 and 141.65-69 yen against $1.3692-3702 and 141.35-45 yen in New York and $1.3588-3589 and 141.78-82 yen in Tokyo late Friday afternoon. The dollar and euro picked up gradually against the yen in morning trading, driven by Japanese importers' yen-selling, but the yen's depreciation looks limited, said Yuzo Sakai , manager of foreign exchange business promotion at Tokyo Forex & Ueda Harlow . "The mood is still very much risk-off, and although the Nikkei's downtrend has slowed, its sluggish movement hints that currency traders will remain similarly wary for the rest of the day." In New York overnight, the dollar was sold for the yen, tumbling to 102.97 yen at one point, as worse-than-expected Chinese manufacturing data for January stirred concerns about a slowdown in emerging economies. "Overnight, concern mounted about the state of emerging economies as the Argentine peso plummeted and the Turkish lira, South African rand and others also slipped, and this triggered risk aversion among traders who bought up the yen," Sakai said. A fall in U.S. long-term interest rate also prompted market participants to sell the dollar on expectations that interest rate differentials between Japan and the United States would widen, he said.

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Source: Japan Economic Newswire

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