News Column

Dollar stays in upper 101 yen zone in Tokyo morning trading

May 27, 2014

The U.S. dollar traded in the upper 101 yen zone Wednesday morning in Tokyo, supported by better-than-expected U.S. economic data but unable to climb due to selling by Japanese exporters.

At noon, the dollar fetched 101.93-102.03 yen compared with 101.93-102.03 yen in New York and 101.76-77 yen in Tokyo at 5 p.m. Tuesday.

The euro was quoted at $1.3637-3638 and 139.00-01 yen against $1.3629-3639 and 139.00-10 yen in New York and $1.3646-3648 and 138.87-91 yen in Tokyo late Tuesday afternoon.

After hitting a two-week high of 102.14 yen in New York overnight on the back of bullish U.S. economic data, including durable goods orders for April, the U.S. currency became top-heavy in Tokyo Wednesday as exporters sought to convert overseas profits into the yen before the end of the month, said Yuji Saito, executive director of foreign exchange at Credit Agricole Corporate & Investment Bank in Tokyo.

Risk sentiment is improving, Saito said, adding, "The market focus is now on (Prime Minister Shinzo Abe's) new plan for economic growth due out in June, with the market gradually leaning toward buying stocks and buying the dollar against the yen."

The euro was mostly flat against the dollar as market participants awaited the European Central Bank's policy meeting on June 5, dealers said.

ECB President Mario Draghi suggested earlier this month the central bank will act with additional easing if inflation in the eurozone remains low.

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Source: Japan Economic Newswire

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