News Column

Dollar trades in upper 101 zone ahead of U.S. economic data

May 27, 2014

Ryotaro Nakamaru

The U.S. dollar stayed in the upper 101 yen zone Tuesday in Tokyo as market players waited for the release later in the day of U.S. economic indicators.

At 5 p.m., the dollar fetched 101.76-77 yen compared with 101.92-93 yen in Tokyo at 5 p.m. Monday. It moved between 101.75 yen and 101.99 yen during the day, changing hands most frequently at 101.92 yen.

Financial markets in the United States and Britain were closed Monday for public holidays.

The euro was quoted at $1.3646-3648 and 138.87-91 yen against $1.3641-3643 and 139.03-07 yen in Tokyo late Monday afternoon.

In the afternoon, the dollar and the euro dropped slightly against the safe-haven yen in tandem with the key Tokyo stock index's partial loss of its earlier gain.

"There isn't much to trade on until the durable goods orders and housing prices come out later today," said Shinichiro Kadota, foreign exchange strategist at Barclays Bank, referring to data on U.S. durable goods orders in April and two indexes of U.S. housing prices in March.

The durable goods data "have been quite strong for the last few months, so a lower reading is being expected this time," said Toru Moritani, chief market economist at Sumitomo Mitsui Banking Corp.

The yen, seen as a relatively safe asset, had support in Tokyo from market concerns over the ongoing turmoil in Ukraine. The Ukrainian military on Monday bombed pro-Russian militants that had seized an airport in the eastern Donetsk region, a day after Ukrainians picked a new president.

"The election was a big risk event, but just because it's over doesn't mean everything is sorted out. Underlying worries remain," Moritani said.

The euro's morning gains against the dollar were erased before European Central Bank President Mario Draghi was to speak in Portugal later in the day. Draghi said Monday the ECB will implement further easing measures as needed to fight deflation.

The ECB's Governing Council meets June 5 to discuss monetary policy.

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

Source: Japan Economic Newswire