News Column

Dollar edges up in mid-101 yen as risk aversion ebbs

July 21, 2014



The U.S. dollar inched up within the mid-101 yen range in Tokyo on Tuesday morning as broad optimism on the U.S. economy conquered ongoing risk aversion on geopolitical unease to spur dollar buying.

At noon, the dollar fetched 101.48-53 yen compared with 101.35-45 yen in New York at 5 p.m. Monday and 101.40-41 yen in Tokyo at 5 p.m. Friday. Markets in Tokyo were closed Monday for a national holiday.

The euro was quoted at $1.3526-3527 and 137.25-32 yen against $1.3519-3529 and 137.07-17 yen in New York late Monday and $1.3530-3531 and 137.20-24 yen in Tokyo late Friday afternoon.

Support for the dollar comes amid resilient risk sentiment as U.S. stocks trimmed earlier losses over the holiday despite ongoing unease over Ukraine and the Middle East, said Yuzo Sakai, manager of foreign exchange business promotion at Tokyo Forex & Ueda Harlow.

"The other main factor is that when Tokyo markets come back from a holiday, we usually see a flurry of dollar buying by Japanese importers, and that's underpinning the dollar against the yen today," Sakai said.

U.S. June consumer prices due out tonight are in focus, with the Federal Reserve watching the consumer price index as one factor in its decisions on how to time the tightening of its monetary policy.

"Dollar buying in anticipation of a strong CPI is likely to be muted in Tokyo, but overseas tonight we could easily see this pick up and put the dollar into the upper 101 yen zone," Sakai said.

The euro picked up slightly against the yen in Tokyo trading time, while remaining flat against the dollar.

"We're still concerned about how geopolitical hot spots will develop from now, but it doesn't seem to be a lasting muffling effect on the global economy," Sakai said.



For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Japan Economic Newswire


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters