Yen falls in Asian trade on rebounding stocks
Friday, 31 October 2008
TOKYO, Oct 30 (AFP): The yen fell against the dollar and the euro in Asia today as rebounding stock prices and global interest rate cuts led investors to sell the safe-haven Japanese currency, dealers said.
The dollar was changing hands at 98.30 yen in Tokyo afternoon trade, up from 97.61 yen in New York late Wednesday.
In another sign of the global crisis easing, the euro went above 1.30 dollars for the first time since October 22. The single European currency rose to 1.3215 dollars from 1.2938 dollars in New York.
The euro, which earlier this week slumped to a more than two- year low against the dollar, also jumped against the yen. It rose to 129.88 yen from 126.20 in New York.
Japan's Nikkei stock index closed nearly 10 per cent higher Thursday after a half-point interest rate cut by the US Federal Reserve, despite modest losses overnight for the Dow Jones on Wall Street.
"As the yen strengthened so rapidly recently, the regaining of calm on the stock market led to moves to unwind the excessive flight to the yen," said Saburo Matsumoto, chief foreign exchange strategist at Sumitomo Trust Bank.
The yen last week soared to a 13-year high against the dollar as investors considered the low-yielding Japanese currency to be a safe haven amid the turmoil.
In Germany, Chancellor Angela Merkel said yesterday she would unveil a "targeted, courageous and sustainable" scheme to help avert a deep recession in Europe's biggest economy.
The dollar dropped against other regional currencies.
It fell to 1,249 South Korean won from 1,431 on Wednesday, to 1.4576 Singapore dollars from 1.5036, to 48.66 Philippine pesos from 49.13 and to 34.77 Thai baht from 34.90.
The greenback also eased to 32.87 Taiwan dollars from 33.30 and to 10,620 Indonesian rupiah from 11,050.
The dollar was changing hands at 98.30 yen in Tokyo afternoon trade, up from 97.61 yen in New York late Wednesday.
In another sign of the global crisis easing, the euro went above 1.30 dollars for the first time since October 22. The single European currency rose to 1.3215 dollars from 1.2938 dollars in New York.
The euro, which earlier this week slumped to a more than two- year low against the dollar, also jumped against the yen. It rose to 129.88 yen from 126.20 in New York.
Japan's Nikkei stock index closed nearly 10 per cent higher Thursday after a half-point interest rate cut by the US Federal Reserve, despite modest losses overnight for the Dow Jones on Wall Street.
"As the yen strengthened so rapidly recently, the regaining of calm on the stock market led to moves to unwind the excessive flight to the yen," said Saburo Matsumoto, chief foreign exchange strategist at Sumitomo Trust Bank.
The yen last week soared to a 13-year high against the dollar as investors considered the low-yielding Japanese currency to be a safe haven amid the turmoil.
In Germany, Chancellor Angela Merkel said yesterday she would unveil a "targeted, courageous and sustainable" scheme to help avert a deep recession in Europe's biggest economy.
The dollar dropped against other regional currencies.
It fell to 1,249 South Korean won from 1,431 on Wednesday, to 1.4576 Singapore dollars from 1.5036, to 48.66 Philippine pesos from 49.13 and to 34.77 Thai baht from 34.90.
The greenback also eased to 32.87 Taiwan dollars from 33.30 and to 10,620 Indonesian rupiah from 11,050.