TOKYO , Feb. 4 -- ( Kyodo ) _ The U.S. dollar traded mainly in the lower 101 yen range on Tuesday in Tokyo , briefly slipping below the 101 yen line, as a darkened U.S. economic outlook added to unease over emerging markets. At 5 p.m. , the dollar fetched 101.09-10 yen compared with 100.92-101.02 yen in New York and 102.12-13 yen in Tokyo at 5 p.m. Monday . It moved between 100.76 yen and 101.38 yen during the day, changing hands most frequently at 101.25 yen . The euro was quoted at $1.3524-3525 and 136.72-76 yen against $1.3520-3530 and 136.55-65 yen in New York and $1.3480-3481 and 137.66-70 yen in Tokyo late Monday afternoon. The dollar moved narrowly in the lower 101 yen range for most of the day's trading in Tokyo , after losing ground in New York overnight as a sell-off in equities prompted investors to seek the relative safety of the Japanese currency. Investors became risk-averse following the release Monday of a worse-than-expected U.S. January manufacturing survey by the Institute for Supply Management . The ISM report suggested January's unusually cold weather was a major factor, but the market was wary of passing off the figures as a blip, said a senior dealer at a major Japanese bank. "Currency markets reacted so strongly to the ISM data because the U.S. economy has been seen as a pillar of stability amid recent unease about the global economic outlook," the dealer said. "An uneasy mood remains with fears for emerging economies, so psychologically the market is hesitant to react to positive figures and easily seizes upon negative ones," he said. The dollar lost further ground against the yen in the afternoon, falling under the 101 yen line at one point, as the Nikkei Stock Average dropped, closing down 610.66 points, or 4.18 percent, from Monday at 14,008.47, marking its biggest one-day fall in about eight months. Concerns over the global economic outlook persist, fueled by slowing growth in China and the U.S. Federal Reserve's tapering of quantitative easing, said Yuzo Sakai , manager of foreign exchange business promotion at Tokyo Forex & Ueda Harlow . Traders are expected to hold their breath ahead of Friday's U.S. nonfarm payrolls data, a key indicator of recovery in the world's largest economy. "We are forecasting an increase of around 180,000 jobs, but in light of the present risk-averse mood, the dollar-yen pair is likely to trade narrowly until Friday," Sakai said. If U.S. employment data to be released Wednesday by Automatic Data Processing Inc. are favorable, uncertainty may slightly lessen ahead of Friday's payrolls, he added.
Most Popular Stories
- Dmytro Firtash, Ukrainian Billionaire, Arrested in Vienna
- Obama, Ukraine Discuss Russian Incursion in Crimea
- Calumet Photo Files for Bankruptcy
- Ukraine Loan Delayed While Congress Goes on Vacation
- Ukraine Moves Closer to Joining E.U.
- Venezuela Death Toll Reaches 28
- Federal Gov't Deficit Continues to Decline
- Russia Holds Large Military Drills in South
- Navarro Celebrates 2 Years of Vida Mia
- Herbalife Puts Off Meeting for Icahn Talks