News Column

Dollar rises to mid-101 yen as Tokyo equities rally

June 30, 2014

The U.S. dollar rose to the mid-101 yen zone Tuesday morning in Tokyo as Japanese equities got a boost from fresh buyers, detracting from the yen's appeal as a safe haven.

At noon, the dollar fetched 101.50-52 yen compared with 101.28-38 yen in New York and 101.38-39 yen in Tokyo at 5 p.m. Monday.

The euro was quoted at $1.3689 and 138.95-96 yen against $1.3687-3697 and 138.70-80 yen in New York and $1.3651-3652 and 138.40-44 yen in Tokyo late Monday afternoon.

The dollar was lifted from near the previous day's six-week low against the yen as the Nikkei Stock Average recovered losses from the week before.

The Bank of Japan's Tankan quarterly report released early in the morning failed to sway currency trading as it was largely in line with market forecasts in showing slightly worsening business confidence among major manufacturers in the country.

Upcoming events include the Institute for Supply Management's June report on the U.S. manufacturing sector due later Tuesday.

"The expectation (on the ISM report) is for a strong number. If U.S. Treasury yields rise on the report, the recent cap on the dollar versus the yen will be loosened," said Yuji Saito, executive director of foreign exchange at Credit Agricole Corporate & Investment Bank in Tokyo.

The euro held onto overnight gains against the dollar and also moved firmer against the yen Tuesday morning as traders turned from the safety of the Japanese currency.

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Source: Japan Economic Newswire

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