News Column

Dollar hovers in upper 101 yen zone in Tokyo morning deals

May 7, 2014

The U.S. dollar hovered in the upper 101 yen zone Thursday morning in Tokyo, underpinned by eased political tensions over Ukraine and better-than-expected Chinese trade data while the low U.S. Treasury yield capped its rise.

At noon, the dollar fetched 101.86-88 yen compared with 101.85-95 yen in New York and 101.53-54 yen in Tokyo at 5 p.m. Wednesday.

The euro was quoted at $1.3916-3918 and 141.75-82 yen against $1.3905-3915 and 141.72-82 yen in New York and $1.3930-3931 and 141.44-48 yen in Tokyo late Wednesday afternoon.

The dollar strengthened to near the 102 yen line at one point in the Tokyo morning session, inheriting momentum from New York trading overnight due to improved risk sentiment, said Toru Moritani, chief market economist at Sumitomo Mitsui Banking Corp.

Worries over developments in Ukraine somewhat receded as Russian President Vladimir Putin on Wednesday asked pro-Moscow separatists to postpone a vote on secession.

Putin also said he was pulling back Russian troops deployed near the Ukraine border.

China's trade figure released in the morning showed exports rising 0.9 percent in April, above market projections, indicating favorable activity in the world's No. 2 economy.

But the U.S. currency's topside was capped by the recently lower U.S. Treasury yield, which makes the dollar less attractive against other currencies.

"Market participants do not dare to buy the U.S. currency as there are few catalysts to push the yield higher despite an upbeat U.S. jobs report released on Friday," Moritani said.

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Source: Japan Economic Newswire

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