Euro eases against yen, dollar in Asia
Thursday, 17 June 2010
TOKYO, June 16 (AFP): The euro eased against the yen and the dollar in Tokyo trade Wednesday on profit taking after earlier gains, dealers said.
The European single currency was at 112.65 yen in Tokyo afternoon trade from 112.72. The dollar was flat at 91.43 yen while the euro eased slightly to 1.2323 dollars from 1.2327.
The dollar and the euro earlier traded higher against the safe-heaven yen, supported by increased risk appetite after Japanese shares moved above the 10,000 level for the first time since May 20.
Spain and Ireland's efforts to raise funds in debt markets also temporarily eased jitters but investors remained cautious. Technical factors explained the greenback's earlier gains, dealers warned.
"Investors are repositioning themselves before the first half ends in June, so a stronger dollar is not because of market optimism," said Hideaki Inoue, chief forex manager at Mitsubishi UFJ and Banking Corp.
"The market has digested almost all the risky factors for now. But it is still far from when players can feel optimistic about the eurozone."
The euro plunged to a four-year dollar low last week on the back of heightened concerns about the eurozone debt and deficit crisis, sinking below 1.19.
Markets are still carefully watching Spain for the next potential crisis as doubts grow over the strength of its banking sector, with investors unsettled by the spread of Greece's debt problems throughout the region.
Moody's said earlier that considerable uncertainty about Greek debt reduction plans, even with the help of an EU-IMF bailout package, justified the ratings cut by four notches from A3 to Ba1.
Sentiment has improved this week after the European Union reported eurozone industrial production grew 0.8 per cent in April and was up 9.5 per cent compared with a year earlier.
Against other Asian currencies the dollar fell to 9,165 Indonesian rupiah from 9,180 on Tuesday, to 32.41 Thai baht from 32.43, to 1.3933 Singapore dollars from 1.3990 and to 32.25 Taiwan dollars from 32.27.
It also declined to 46.16 Philippine pesos from 46.62 and to 1,209.65 South Korean won from 1,226.60.
The European single currency was at 112.65 yen in Tokyo afternoon trade from 112.72. The dollar was flat at 91.43 yen while the euro eased slightly to 1.2323 dollars from 1.2327.
The dollar and the euro earlier traded higher against the safe-heaven yen, supported by increased risk appetite after Japanese shares moved above the 10,000 level for the first time since May 20.
Spain and Ireland's efforts to raise funds in debt markets also temporarily eased jitters but investors remained cautious. Technical factors explained the greenback's earlier gains, dealers warned.
"Investors are repositioning themselves before the first half ends in June, so a stronger dollar is not because of market optimism," said Hideaki Inoue, chief forex manager at Mitsubishi UFJ and Banking Corp.
"The market has digested almost all the risky factors for now. But it is still far from when players can feel optimistic about the eurozone."
The euro plunged to a four-year dollar low last week on the back of heightened concerns about the eurozone debt and deficit crisis, sinking below 1.19.
Markets are still carefully watching Spain for the next potential crisis as doubts grow over the strength of its banking sector, with investors unsettled by the spread of Greece's debt problems throughout the region.
Moody's said earlier that considerable uncertainty about Greek debt reduction plans, even with the help of an EU-IMF bailout package, justified the ratings cut by four notches from A3 to Ba1.
Sentiment has improved this week after the European Union reported eurozone industrial production grew 0.8 per cent in April and was up 9.5 per cent compared with a year earlier.
Against other Asian currencies the dollar fell to 9,165 Indonesian rupiah from 9,180 on Tuesday, to 32.41 Thai baht from 32.43, to 1.3933 Singapore dollars from 1.3990 and to 32.25 Taiwan dollars from 32.27.
It also declined to 46.16 Philippine pesos from 46.62 and to 1,209.65 South Korean won from 1,226.60.