$ rebounds from 18-month low against yen
Wednesday, 14 November 2007
TOKYO, Nov 13 (AFP): The dollar rebounded from an 18- month low against the yen in Asian trade today as Tokyo voiced concern about the recent spike in the value of the Japanese currency, dealers said.
They said traders were keeping a close watch on global stock markets while a decision by the Bank of Japan to leave its interest rates unchanged had little impact as it had been widely expected.
The dollar rebounded to 110.14 yen in Tokyo afternoon trade from 109.41 in New York late Monday, when it had earlier hit a low of 109.13.
The euro rose to 1.4580 dollars from 1.4529 but declined to 160.56 yen from 161.55.
There was speculation that Japan will not tolerate a sudden surge in its currency because it would hurt its exports and threaten economic growth.
Japanese Prime Minister Yasuo Fukuda told the Financial Times that the yen was rising "too fast" although in the longer run a stronger currency was not necessarily a bad thing.
Fukuda said that speculative movements "need to be kept in check," although he stopped short of threatening intervention on the foreign exchange market to halt the yen's recent surge.
Japan's monetary authorities have not intervened on the foreign exchange market since March 2004, allowing the yen to find its own level against the dollar.
But talk of intervention resurfaced after the dollar dropped below the psychologically important 110 yen level Monday for the first time since May 2006 as speculators exited risky trades funded by selling the yen.
Meanwhile Japan Tuesday reported better-than-expected third quarter Japanese gross domestic product (GDP) growth on the back of brisk exports.
Market participants largely ignored a decision by the Bank of Japan to leave its key interest rate unchanged at 0.5 percent, where it has been since February.
The dollar was higher against regional Asian currencies, rising to 1.4538 Singapore dollars from 1.4465, to 32.32 Taiwan dollars from 32.28 and to 918.90 South Korean won from 911.10.
The greenback firmed to 43.16 Philippine pesos from 43.11, to 9,187.50 Indonesian rupiah from 9,170.50 and to 31.71 Thai baht from 31.68.
They said traders were keeping a close watch on global stock markets while a decision by the Bank of Japan to leave its interest rates unchanged had little impact as it had been widely expected.
The dollar rebounded to 110.14 yen in Tokyo afternoon trade from 109.41 in New York late Monday, when it had earlier hit a low of 109.13.
The euro rose to 1.4580 dollars from 1.4529 but declined to 160.56 yen from 161.55.
There was speculation that Japan will not tolerate a sudden surge in its currency because it would hurt its exports and threaten economic growth.
Japanese Prime Minister Yasuo Fukuda told the Financial Times that the yen was rising "too fast" although in the longer run a stronger currency was not necessarily a bad thing.
Fukuda said that speculative movements "need to be kept in check," although he stopped short of threatening intervention on the foreign exchange market to halt the yen's recent surge.
Japan's monetary authorities have not intervened on the foreign exchange market since March 2004, allowing the yen to find its own level against the dollar.
But talk of intervention resurfaced after the dollar dropped below the psychologically important 110 yen level Monday for the first time since May 2006 as speculators exited risky trades funded by selling the yen.
Meanwhile Japan Tuesday reported better-than-expected third quarter Japanese gross domestic product (GDP) growth on the back of brisk exports.
Market participants largely ignored a decision by the Bank of Japan to leave its key interest rate unchanged at 0.5 percent, where it has been since February.
The dollar was higher against regional Asian currencies, rising to 1.4538 Singapore dollars from 1.4465, to 32.32 Taiwan dollars from 32.28 and to 918.90 South Korean won from 911.10.
The greenback firmed to 43.16 Philippine pesos from 43.11, to 9,187.50 Indonesian rupiah from 9,170.50 and to 31.71 Thai baht from 31.68.