News Column

Dollar rises to upper 102 yen zone from 7-week low

January 27, 2014

TOKYO , Jan. 27 -- ( Kyodo ) _ The U.S. dollar rose to the upper 102 yen zone Monday in Tokyo after falling to a seven-week low early in the morning. At 5 p.m. , the dollar fetched 102.68-69 yen compared with 102.34-44 yen in New York and 103.36-37 yen in Tokyo at 5 p.m. Friday . It moved between 101.77 yen and 102.74 yen during the day, changing hands most frequently at 102.45 yen . The euro was quoted at $1.3688-3689 and 140.55-59 yen against $1.3673-3683 and 139.90-140.00 yen in New York and $1.3686-3687 and 141.46-50 yen in Tokyo late Friday afternoon. The dollar dropped to as low as 101.77 yen in the morning, its lowest level since December, while the euro dipped below the 140 yen line, as worries over a slowdown in China's growth and a broad plunge in emerging market currencies on Friday led by the Argentine peso prompted market players to purchase the safe-haven yen, dealers said. Both the U.S. currency and the euro, however, turned upward after government data showed Japan posted a record trade deficit of 11.47 trillion yen in 2013. Demand from domestic importers also supported the dollar and the euro, said Yuzo Sakai , manager of foreign exchange business promotion at Tokyo Forex & Ueda Harlow , although the currencies were still well below their levels in Tokyo on Friday. Market focus is now on the U.S. Federal Reserve's two-day policy meeting from Tuesday, an event dealers say may put further pressure on emerging market currencies. The U.S. central bank is widely expected to continue paring back its monthly bond buying program, causing U.S. capital in emerging markets to dry up and prompting an exodus from risky assets to major currencies. Asked if it is likely that the yen will rise further on the back of safe-haven purchasing, Shinichiro Kadota , foreign exchange strategist at Barclays Bank , said, "Most market players seem to have already factored in" the stimulus cuts, indicating rapid moves are unlikely.

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Source: Japan Economic Newswire

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