News Column

Dollar slides to lower 102 yen on retreat in Tokyo stocks

June 10, 2014

Ryotaro Nakamaru



The U.S. dollar slipped to the lower 102 yen range Tuesday in Tokyo as a fall in Japanese stocks weighed on risk sentiment and added to the yen's safe-haven appeal.

At 5 p.m., the dollar fetched 102.24-25 yen compared with 102.48-58 yen in New York and 102.45-46 yen in Tokyo at 5 p.m. Monday. It moved between 102.22 yen and 102.57 yen during the day, changing hands most frequently at 102.37 yen.

The euro was quoted at $1.3591-3592 and 138.96-139.00 yen against $1.3589-3599 and 139.33-43 yen in New York and $1.3648-3650 and 139.83-87 yen in Tokyo late Monday afternoon.

The dollar fell against the yen as the Nikkei stock index erased its gains from the past week, but the downtrend was limited as market players moved little ahead of the Bank of Japan's two-day policy meeting from Thursday.

The BOJ is widely expected to stand pat on additional monetary easing measures.

"The (Japanese) economy is strong, and even though stocks fell today it's still up there, so there won't be any political pressure to act" with further stimulus, said Yasuaki Amatatsu, market analyst at the Bank of Tokyo-Mitsubishi UFJ.

"(BOJ Governor Haruhiko) Kuroda will prefer to wait until it's most needed," he said on the possibility of the bank's further monetary easing steps.

Kuroda said Saturday the central bank's current stimulus program introduced in April last year is having the intended effects of improving financial markets and the real economy.

Market players have started looking to next week's policy meeting of the U.S. Federal Reserve for hints on how the U.S. central bank will exit from its current accommodative monetary policy, said Toru Moritani, chief market economist at Sumitomo Mitsui Banking Corp.

In Tokyo trading, the euro was mostly unchanged against the dollar and fell against the yen. It had dropped against both currencies overnight as bond yields in the eurozone fell, a delayed outcome of the European Central Bank's new monetary easing plan announced on Thursday, Moritani said.



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Source: Japan Economic Newswire


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