News Column

Dollar stays in the mid-102 yen zone after Fed chief's testimony

February 11, 2014

TOKYO, Feb. 12 -- (Kyodo) _ The U.S. dollar stayed in the mid-102 yen zone Wednesday morning in Tokyo after the new U.S. Federal Reserve chief Janet Yellen signaled overnight that there would be no immediate changes to U.S. monetary policy.

At noon, the dollar fetched 102.57-58 yen compared with 102.58-68 yen in New York at 5 p.m. Tuesday. The Tokyo market was closed Tuesday for a national holiday.

The euro was quoted at $1.3628-3629 and 139.79-81 yen against $1.3634-3644 and 139.94-140.04 yen in New York late Tuesday afternoon.

The dollar inherited its strength set in New York overnight, though it briefly fell below the 102.50 yen line.

In New York, the new Fed chair who succeeded Ben Bernake said in her first congressional testimony that the central bank will keep reducing the size of its asset purchases.

"Yellen's remarks, which came as expected and offered no surprises, reassured market players as she is likely to adhere to the Fed's policies" taken under Bernanke, said a senior dealer at a major Japanese bank.

The approval Tuesday by the U.S. House of Representatives of a measure to suspend the U.S. debt ceiling until March 2015 also contributed to the U.S. currency's firmness against the yen, gradually removing a sense of unease among investors, the dealer added.

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Source: Japan Economic Newswire

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