Euro hits near one-year high on market optimism
Friday, 18 September 2009
TOKYO, Sept 17 (AFP): The euro soared to the highest level against the dollar in almost one year in Asia today as investors sold safe-haven assets in light of growing optimism about the economic outlook.
The euro gained to 1.4745 dollars in Tokyo afternoon trade, a level last seen on September 25, 2008 and up from 1.4708 in late New York deals.
The dollar was steady at 90.95 yen against 90.94 in New York. The euro climbed to 134.13 yen from 133.74.
Investors sold the greenback to buy riskier assets after Wall Street stocks jumped to the highest level in 11 months on the back of better factory data.
"The US dollar continues to be under pressure as investors are leaving safe havens," said Rabobank International economist Philip Marey.
Speculators continued to use the dollar to fund carry trades
borrowing cheap credit to invest in higher-yielding assets elsewhere-taking advantage of the super-low lending rates in the United States.
The yen wobbled a day after Japanese Prime Minister Yukio Hatoyama took command of a new centre-left government that has in its top ranks opponents of market liberalisation and an ex-trade union activist.
"Looking at the cabinet line-up, it's little wonder that the yen has been sold. I'm uneasy about the future," said Hachijuni Bank forex strategist Masatsugu Miyata.
In particular Hatoyama's choice of minister for postal reform and financial supervision -- 72-year-old Shizuka Kamei-triggered concern among investors.
He is a critic of what he describes as US-led "unbridled capitalism" and opposed postal privatisation, which he is expected to move to reverse.
The euro gained to 1.4745 dollars in Tokyo afternoon trade, a level last seen on September 25, 2008 and up from 1.4708 in late New York deals.
The dollar was steady at 90.95 yen against 90.94 in New York. The euro climbed to 134.13 yen from 133.74.
Investors sold the greenback to buy riskier assets after Wall Street stocks jumped to the highest level in 11 months on the back of better factory data.
"The US dollar continues to be under pressure as investors are leaving safe havens," said Rabobank International economist Philip Marey.
Speculators continued to use the dollar to fund carry trades
borrowing cheap credit to invest in higher-yielding assets elsewhere-taking advantage of the super-low lending rates in the United States.
The yen wobbled a day after Japanese Prime Minister Yukio Hatoyama took command of a new centre-left government that has in its top ranks opponents of market liberalisation and an ex-trade union activist.
"Looking at the cabinet line-up, it's little wonder that the yen has been sold. I'm uneasy about the future," said Hachijuni Bank forex strategist Masatsugu Miyata.
In particular Hatoyama's choice of minister for postal reform and financial supervision -- 72-year-old Shizuka Kamei-triggered concern among investors.
He is a critic of what he describes as US-led "unbridled capitalism" and opposed postal privatisation, which he is expected to move to reverse.