News Column

Dollar in upper 101 yen in morning, aided by upbeat U.S. economic view

June 19, 2014

The U.S. dollar was steady in the upper 101 yen range in Tokyo Friday morning, with its downside underpinned by market optimism over the health of the U.S. economy.

At noon, the dollar fetched 101.88-92 yen compared with 101.89-99 yen in New York and 101.78-79 yen in Tokyo at 5 p.m. Thursday.

The euro was quoted at $1.3614-3617 and 138.71-73 yen against $1.3602-3612 and 138.65-75 yen in New York and $1.3617-3618 and 138.60-64 yen in Tokyo late Thursday afternoon.

The dollar was stable in the upper 101 yen zone, inheriting its firmness in New York overnight on the back of stronger-than-expected U.S. manufacturing data for June.

A senior dealer at a major Japanese bank said, "The mid- and long-term market view is that the U.S. economy is solid and given also the recent firmness in Japanese stocks, market participants have no reasons to sell the dollar against the yen."

The Federal Reserve Bank of Philadelphia said Thursday the index of current general activity rose to 17.8 this month from 15.4 in May, with the reading beating market forecast of 14.0.

The index and other upbeat economic readings in the United States have helped offset market players' disappointment over the U.S. Federal Reserve's dovish stance, revealed Wednesday, which dashed expectations of an early interest rate hike and weakened the dollar against the yen, other dealers said.

Still, the U.S. currency could not sustain the 102 yen line it briefly touched in early Tokyo trading Friday.

"The geopolitical concerns linger and make it hard for market players to take risks," the senior dealer said, referring to the standoff between Iraq's army and Islamic militants, as well as armed clashes between the Ukrainian government forces and pro-Russian militants.

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Source: Japan Economic Newswire

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