News Column

Dollar stays in mid-102 yen zone in thin summer break trading

August 14, 2014

Ryotaro Nakamaru

The U.S. dollar remained in the mid-102 yen range Thursday in Tokyo, moving little with many Japanese traders away for the Bon summer holiday.

At 5 p.m., the dollar fetched 102.46-48 yen compared with 102.37-47 yen in New York and 102.45-47 yen in Tokyo at 5 p.m. Wednesday. It moved between 102.40 yen and 102.66 yen during the day, changing hands most frequently at 102.60 yen.

The euro was quoted at $1.3359-3361 and 136.88-92 yen against $1.3359-3369 and 136.82-92 yen in New York and $1.3351-3352 and 136.78-82 yen in Tokyo late Wednesday afternoon.

The dollar saw slight gains against the yen in the morning after a rebound in Japan's machinery orders in June prompted a shift from the perceived safety of the yen.

Machinery orders excluding ships and utilities rose 8.8 percent in June from the previous month, compared with a record drop of 19.5 percent posted in May.

Trading volumes throughout the day were low amid the Bon summer holiday, dealers said.

The euro was bought against the yen after the machinery orders data but looked set to soften after the release later in the day of eurozone April-June gross domestic product data and a final reading for consumer prices in the region.

"Recent economic indicators from Europe, Germany in particular, have been dropping at quite an acute angle. The GDP may fall into negative territory," said Toru Moritani, chief market economist at Sumitomo Mitsui Banking Corp.

The German economy shrank by 0.2 percent on quarter while France's was at a standstill, data released Thursday showed.

"Germany is the powerhouse (of the eurozone). If it peters out, the European Central Bank will be more motivated to add to monetary easing," Mizuho Securities'Suzuki said.

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Source: Japan Economic Newswire

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