News Column

Dollar drops to upper 101 yen zone on uncertain U.S. economy outlook

February 14, 2014

TOKYO, Feb. 14 -- (Kyodo) _ The U.S. dollar retreated to the upper 101 yen zone Friday in Tokyo on uncertainty over the outlook for the U.S. economy following weak retail sales data released overnight.

At 5 p.m., the dollar fetched 101.82-84 yen compared with 102.11-21 yen in New York and 102.11-12 yen in Tokyo at 5 p.m. Thursday. It moved between 101.57 yen and 102.40 yen during the day, changing hands most frequently at 102.25 yen.

The euro was quoted at $1.3707-3709 and 139.57-61 yen against $1.3675-3685 and 139.73-83 yen in New York and $1.3622-3623 and 139.10-14 yen in Tokyo late Thursday afternoon.

The U.S. currency remained weak against the yen in Tokyo trading and selling accelerated in the afternoon, briefly falling to the mid-101 yen range.

Volume was thin in Tokyo trading due to a lack of fresh market moving events, dealers said.

"The dollar can't rise and is in a weak tone as it is unclear whether the currency is supported by strong economic numbers," said Shuichi Kanehira, deputy general manager of the foreign exchange division at Mizuho Bank.

U.S. retail sales in January dropped 0.4 percent from the previous month, the U.S. Commerce Department said Thursday, suggesting the possibility of slowing economic growth in the world's largest economy.

While the U.S. stock markets saw the data as having been affected by the record cold weather hitting the country, the currency market took it as an indication of weakness, said Daisuke Uno, chief strategist of the Treasury Marketing Department at Sumitomo Mitsui Banking Corp.

"An unstable situation for the dollar is likely to continue for the time being, although it would not drop sharply," Mizuho's Kanehira said.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Japan Economic Newswire

Story Tools