News Column

Dollar slips to lower 102 yen in morning on weak Tokyo stocks

June 9, 2014

The U.S. dollar slipped to the lower 102 yen range Tuesday morning in Tokyo as stocks there lost ground, feeding demand for the safe haven yen.

At noon, the dollar fetched 102.39-43 yen compared with 102.48-58 yen in New York and 102.45-46 yen in Tokyo at 5 p.m. Monday.

The euro was quoted at $1.3590-3592 and 139.14-21 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 on the weakness in the Nikkei stock index but the downtrend was limited with players moving 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. Governor Haruhiko 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 begun casting their gazes on next week's meeting of the U.S. Federal Reserve's Open Market Committee, said Toru Moritani, chief market economist at Sumitomo Mitsui Banking Corp.

The Fed's policy board is expected to discuss its strategy on how to exit its current monetary easing measures, and if any signs of this are touched upon in the ensuing press conference, it could feed all kinds of speculation, Moritani said.

The euro was flat against the dollar and slightly lower against the yen after dropping in overnight trading as bonds in the eurozone were bought, pushing down yields and detracting from the shared currency's appeal.

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Source: Japan Economic Newswire

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