Dollar firms against yen in Asia
Wednesday, 22 August 2007
TOKYO, Aug 21 (AFP): The dollar clawed back more ground against the yen in Asian trade today as a recent rebound in global share prices brought a lull in the unwinding of risky trades, dealers said.
The yen shot higher last week as "carry traders"-who had previously sold the yen heavily to buy high-yielding currencies - - beat a hasty retreat.
But with global markets showing signs of stabilising after the US Federal Reserve cut the lending rate it charges commercial banks Friday, risk aversion has receded somewhat, dealers said.
The dollar rose to 115.00 yen in late afternoon trade in Tokyo, up from 114.86 yen in New York late Monday.
The euro rose to 1.3481 dollars from 1.3473 and to 155.02 yen from 154.80.
"Stock prices have rebounded after the Fed move last week and (market players) are waiting to see how things will develop next," said Nobuaki Tani, currency analyst at Resona Bank.
World financial markets had been roiled since early August by mounting concerns over the economic fallout from the weak subprime, or high-risk, home loan market in the United States.
The US Federal Reserve Friday cut its discount rate it charges commercial banks by a half-point to 5.75 per cent, raising expectations it may also lower its key federal funds rate, the overnight rate banks charge each other.
Japanese Finance Minister Koji Omi told reporters he agreed with US Treasury Secretary Henry Paulson by telephone to monitor the financial markets closely.
Omi also said the overall market situation appeared to be calming down. "We still cannot say the situation is completely resolved, but it has been stabilising for a while," he told reporters.
The dollar fell to 943.55 South Korean won from 943.65 a day earlier, to 32.90 Thai baht from 33.00 and to 1.5259 Singapore dollars from 1.5260.
The yen shot higher last week as "carry traders"-who had previously sold the yen heavily to buy high-yielding currencies - - beat a hasty retreat.
But with global markets showing signs of stabilising after the US Federal Reserve cut the lending rate it charges commercial banks Friday, risk aversion has receded somewhat, dealers said.
The dollar rose to 115.00 yen in late afternoon trade in Tokyo, up from 114.86 yen in New York late Monday.
The euro rose to 1.3481 dollars from 1.3473 and to 155.02 yen from 154.80.
"Stock prices have rebounded after the Fed move last week and (market players) are waiting to see how things will develop next," said Nobuaki Tani, currency analyst at Resona Bank.
World financial markets had been roiled since early August by mounting concerns over the economic fallout from the weak subprime, or high-risk, home loan market in the United States.
The US Federal Reserve Friday cut its discount rate it charges commercial banks by a half-point to 5.75 per cent, raising expectations it may also lower its key federal funds rate, the overnight rate banks charge each other.
Japanese Finance Minister Koji Omi told reporters he agreed with US Treasury Secretary Henry Paulson by telephone to monitor the financial markets closely.
Omi also said the overall market situation appeared to be calming down. "We still cannot say the situation is completely resolved, but it has been stabilising for a while," he told reporters.
The dollar fell to 943.55 South Korean won from 943.65 a day earlier, to 32.90 Thai baht from 33.00 and to 1.5259 Singapore dollars from 1.5260.