Yen gains against dollar, euro on risk aversion
Wednesday, 9 July 2008
TOKYO, July 8 (AFP): The yen gained against major currencies in Asian trade today on risk aversion amid jitters the US financial sector may face a fresh drubbing from the lingering credit crunch, dealers said.
The dollar slipped to 107.01 in Tokyo afternoon trade from 107.10 in New York late Monday.
And the euro slipped to 168.07 yen from 168.56.
The also euro slipped to 1.5706 dollars from 1.5730 dollars, with weak economic data from Germany and Britain on Monday capping the single European currency.
The greenback and the European currency slipped against the yen "likely on unwinding of yen-carry trade due to recent risk- aversion trend," an unnamed senior trader at a major bank in Tokyo told Dow Jones Newswires.
The yen had been the subject of carry trades into the months before the subprime mortgage crisis erupted in summer 2007 as bullish investors bought the currency to fund higher-yielding assets elsewhere.
The dollar in earlier trade staged a rally overnight on weekend remarks by President George W. Bush in favour of "a strong dollar" ahead of the Group of Eight (G8) summit in Japan.
The market is also waiting for speeches later this week by senior US monetary officials, including congressional testimony by Federal Reserve chairman Ben Bernanke on Thursday.
The G8 leaders are having a second day of talks on Tuesday in the northern Japan town of Toyako with the market eyeing the possibility of a statement to support the US currency.
The dollar was mixed in regional Asian trade. It firmed to 1.3630 Singapore dollars from 1.3615 on Monday, to 33.67 Thai baht from 33.60, and to 45.81 Philippine pesos from 45.49. The greenback slipped to 9,201 Indonesian rupiah from 9,205 and to 1,032.05 South Korean won from 1,042.60. It was flat at 30.39 Taiwan dollars.
The dollar slipped to 107.01 in Tokyo afternoon trade from 107.10 in New York late Monday.
And the euro slipped to 168.07 yen from 168.56.
The also euro slipped to 1.5706 dollars from 1.5730 dollars, with weak economic data from Germany and Britain on Monday capping the single European currency.
The greenback and the European currency slipped against the yen "likely on unwinding of yen-carry trade due to recent risk- aversion trend," an unnamed senior trader at a major bank in Tokyo told Dow Jones Newswires.
The yen had been the subject of carry trades into the months before the subprime mortgage crisis erupted in summer 2007 as bullish investors bought the currency to fund higher-yielding assets elsewhere.
The dollar in earlier trade staged a rally overnight on weekend remarks by President George W. Bush in favour of "a strong dollar" ahead of the Group of Eight (G8) summit in Japan.
The market is also waiting for speeches later this week by senior US monetary officials, including congressional testimony by Federal Reserve chairman Ben Bernanke on Thursday.
The G8 leaders are having a second day of talks on Tuesday in the northern Japan town of Toyako with the market eyeing the possibility of a statement to support the US currency.
The dollar was mixed in regional Asian trade. It firmed to 1.3630 Singapore dollars from 1.3615 on Monday, to 33.67 Thai baht from 33.60, and to 45.81 Philippine pesos from 45.49. The greenback slipped to 9,201 Indonesian rupiah from 9,205 and to 1,032.05 South Korean won from 1,042.60. It was flat at 30.39 Taiwan dollars.