Dollar gains on yen after Wall Street rally
Thursday, 15 November 2007
TOKYO, Nov 14 (AFP): The dollar extended a rebound against the yen in Asian trade today as a rally on Wall Street helped market players to regain some of their appetite for risk, dealers said.
The market was waiting for a speech later in the day by US Federal Reserve chairman Ben Bernanke and for US retail sales data to see how the US subprime mortgage crisis has affected consumption, they added.
The dollar edged up to 111.05 yen in Tokyo afternoon trade from 110.90 in New York late Tuesday.
The euro gained to 1.4656 dollars from 1.4600 and to 162.75 yen from 161.95.
The greenback rallied further away from a recent 18-month low against the yen after US stocks were boosted overnight by stronger-than-expected earnings from retail giant Wal-Mart and a sharp drop in crude oil prices, dealers said.
The dollar was also supported by comments from Wall Street giant Goldman Sachs that it will not be announcing any significant write-downs on its exposure to the subprime mortgage market, they added.
"The dollar rebounded against the yen amid renewed risk appetite," said Masaki Fukui, senior forex market economist at Mizuho Corporate Bank.
The dollar has been hit hard recently against the yen as speculators unwound risky "carry trades" that involve selling low-yielding currencies such as the yen for high-return ones.
The market was waiting for a speech later in the day by US Federal Reserve chairman Ben Bernanke and for US retail sales data to see how the US subprime mortgage crisis has affected consumption, they added.
The dollar edged up to 111.05 yen in Tokyo afternoon trade from 110.90 in New York late Tuesday.
The euro gained to 1.4656 dollars from 1.4600 and to 162.75 yen from 161.95.
The greenback rallied further away from a recent 18-month low against the yen after US stocks were boosted overnight by stronger-than-expected earnings from retail giant Wal-Mart and a sharp drop in crude oil prices, dealers said.
The dollar was also supported by comments from Wall Street giant Goldman Sachs that it will not be announcing any significant write-downs on its exposure to the subprime mortgage market, they added.
"The dollar rebounded against the yen amid renewed risk appetite," said Masaki Fukui, senior forex market economist at Mizuho Corporate Bank.
The dollar has been hit hard recently against the yen as speculators unwound risky "carry trades" that involve selling low-yielding currencies such as the yen for high-return ones.