Yen advances against dollar, euro
Friday, 28 August 2009
TOKYO, Aug 27 (AFP): The yen advanced against the dollar and the euro in Asian trade today as falls on Asian stock markets reduced investors' appetite for risk-taking, dealers said.
The dollar slipped to 93.69 yen in Tokyo afternoon trade from 94.22 in New York late Wednesday. The euro fell to 1.4235 dollars from 1.4250 and to 133.34 yen from 134.30.
Strong gains in world stocks have raised the likelihood of a downturn if economic data fail to meet high expectations, dealers said. Japanese stocks fell 1.59 percent in morning trade on Thursday.
"The pendulum has swung back to risk consolidation ... with upbeat economic data passed over in favour of caution," said Societe Generale currency strategist Patrick Bennett.
Investors gave a muted response to figures showing sales of new US homes surged 9.6 percent in July, in what was seen as a further sign of recovery for the troubled housing sector.
There was also a sharper-than-expected 4.9 percent rise in new orders for US manufactured durable goods in July-the third increase in the last four months and the sharpest rise since July 2007.
Investors will be looking at an updated estimate of second- quarter US gross domestic product figures due later in the day, followed by a consumer sentiment survey on Friday.
The recent surge in market optimism was tempered after the Chinese authorities reportedly said they would try to rein in excessive investment and overcapacity in industries including steel and cement.
"Concerns over the sustainability of China's economic recovery continue to weigh on sentiment towards global economic growth," NAB Capital strategist John Kyriakopoulos said.
The dollar slipped to 93.69 yen in Tokyo afternoon trade from 94.22 in New York late Wednesday. The euro fell to 1.4235 dollars from 1.4250 and to 133.34 yen from 134.30.
Strong gains in world stocks have raised the likelihood of a downturn if economic data fail to meet high expectations, dealers said. Japanese stocks fell 1.59 percent in morning trade on Thursday.
"The pendulum has swung back to risk consolidation ... with upbeat economic data passed over in favour of caution," said Societe Generale currency strategist Patrick Bennett.
Investors gave a muted response to figures showing sales of new US homes surged 9.6 percent in July, in what was seen as a further sign of recovery for the troubled housing sector.
There was also a sharper-than-expected 4.9 percent rise in new orders for US manufactured durable goods in July-the third increase in the last four months and the sharpest rise since July 2007.
Investors will be looking at an updated estimate of second- quarter US gross domestic product figures due later in the day, followed by a consumer sentiment survey on Friday.
The recent surge in market optimism was tempered after the Chinese authorities reportedly said they would try to rein in excessive investment and overcapacity in industries including steel and cement.
"Concerns over the sustainability of China's economic recovery continue to weigh on sentiment towards global economic growth," NAB Capital strategist John Kyriakopoulos said.