Yen boosted in Asia by falling stocks
Thursday, 3 September 2009
TOKYO, Sept 2 (AFP): The yen traded near seven-week highs against the euro and the dollar in Asian trade today as falls on global stock markets spurred demand for safe-haven investments.
The dollar slid to as low as 92.51 yen at one point, its weakest since July 13,
while the euro declined to 131.47 yen, a level last seen on July 15.
The selling of risk-sensitive assets "reflects the nervousness of investors about the sustainability of global economic recovery," Barclays Capital analysts wrote in a note.
The yen, seen as a relatively safe investment in times of uncertainty or financial market turmoil, failed to keep its upward momentum as traders moved to take profits late in the Asian session.
In late Tokyo trade the dollar was at 92.93 yen, against 92.96 in New York late Tuesday. The euro stood at 1.4226 dollars compared with 1.4219 and at 132.19 yen after 132.18.
The market was waiting for more US economic data due this week, including Friday's key monthly jobs report.
Analysts estimate the US economy shed 225,000 jobs in August, with the pace of losses slowing from 247,000 in July.
While recent data from the world's top economy has been seen as mostly positive, persistent weakness in the labour market is pressuring consumer spending-a major pillar of the economy.
An employment report from the private-sector ADP payrolls service out later in the day will give an early snapshot of the labour situation.
The Institute of Supply Management (ISM) said Tuesday that the US manufacturing sector grew in August after 18 consecutive monthly declines, but the news failed to give US stocks a boost.
Against Asian currencies, the dollar rose to 1,249.80 South Korean won from 1,240.80 a day earlier, to 1.4439 Singapore dollars from 1.4393 and to 32.89 Taiwan dollars from 32.84.
The greenback rose to 10,158 Indonesian rupiah from 10,081, to 48.89 Philippine pesos from 48.76 and to 34.03 Thai baht from 34.01.
The dollar slid to as low as 92.51 yen at one point, its weakest since July 13,
while the euro declined to 131.47 yen, a level last seen on July 15.
The selling of risk-sensitive assets "reflects the nervousness of investors about the sustainability of global economic recovery," Barclays Capital analysts wrote in a note.
The yen, seen as a relatively safe investment in times of uncertainty or financial market turmoil, failed to keep its upward momentum as traders moved to take profits late in the Asian session.
In late Tokyo trade the dollar was at 92.93 yen, against 92.96 in New York late Tuesday. The euro stood at 1.4226 dollars compared with 1.4219 and at 132.19 yen after 132.18.
The market was waiting for more US economic data due this week, including Friday's key monthly jobs report.
Analysts estimate the US economy shed 225,000 jobs in August, with the pace of losses slowing from 247,000 in July.
While recent data from the world's top economy has been seen as mostly positive, persistent weakness in the labour market is pressuring consumer spending-a major pillar of the economy.
An employment report from the private-sector ADP payrolls service out later in the day will give an early snapshot of the labour situation.
The Institute of Supply Management (ISM) said Tuesday that the US manufacturing sector grew in August after 18 consecutive monthly declines, but the news failed to give US stocks a boost.
Against Asian currencies, the dollar rose to 1,249.80 South Korean won from 1,240.80 a day earlier, to 1.4439 Singapore dollars from 1.4393 and to 32.89 Taiwan dollars from 32.84.
The greenback rose to 10,158 Indonesian rupiah from 10,081, to 48.89 Philippine pesos from 48.76 and to 34.03 Thai baht from 34.01.