Yen gains on strong Japanese growth data
Tuesday, 17 November 2009
TOKYO, Nov 16 (AFP): The yen rose against the dollar in Asian trade Monday in the wake of unexpectedly strong Japanese economic growth figures.
The dollar was quoted at 89.50 yen in Tokyo afternoon trade, down from 89.66 in New York late Friday.
Japan's gross domestic product (GDP) grew 1.2 per cent in the third quarter of 2009 from the previous quarter-the fastest pace in two-and-a-half years and much better than expected, the government reported.
"The GDP data was good but yen buying was limited with no rises in share prices," said Yuji Saito, forex chief at Societe Generale.
The euro also gained as higher commodity prices, driven by hopes of a global economic recovery, spurred investor risk appetite, market watchers said.
"Gains in gold prices lifted demand for currencies of commodities-exporting nations like the Aussie against the US dollar," Osao Iizuka, chief forex trader at the Sumitomo Trust and Banking Co, told Dow Jones Newswires.
"Then the selling of the US dollar spread across other currencies, causing the euro to gain ground," he said.
The European currency rose to 1.4970 dollars, up from 1.4911 in New York, and to 134.00 yen from 133.69.
Market players were also watching US President Barack Obama's visit to China.
Washington has urged Beijing to relax its exchange rate regime, hinting that it keeps the value of the yuan artificially low to boost exports, but analysts say any gains in the value of the Chinese currency will be only gradual.
"China has shown that it will move at its own pace and will not be coerced by markets or criticism of its actions," said Societe Generale forex analyst Patrick Bennett.
Other potentially market-moving events include a speech by Federal Reserve Chairman Ben Bernanke later Monday.
Against regional Asian currencies, the dollar fell to 1,153.80 South Korean won from 1,160.65 Friday, to 1.3841 Singapore dollars from 1.3895, to 9,340 Indonesian rupiah from 9,415, and to 33.18 Thai baht from 33.32.
The dollar was quoted at 89.50 yen in Tokyo afternoon trade, down from 89.66 in New York late Friday.
Japan's gross domestic product (GDP) grew 1.2 per cent in the third quarter of 2009 from the previous quarter-the fastest pace in two-and-a-half years and much better than expected, the government reported.
"The GDP data was good but yen buying was limited with no rises in share prices," said Yuji Saito, forex chief at Societe Generale.
The euro also gained as higher commodity prices, driven by hopes of a global economic recovery, spurred investor risk appetite, market watchers said.
"Gains in gold prices lifted demand for currencies of commodities-exporting nations like the Aussie against the US dollar," Osao Iizuka, chief forex trader at the Sumitomo Trust and Banking Co, told Dow Jones Newswires.
"Then the selling of the US dollar spread across other currencies, causing the euro to gain ground," he said.
The European currency rose to 1.4970 dollars, up from 1.4911 in New York, and to 134.00 yen from 133.69.
Market players were also watching US President Barack Obama's visit to China.
Washington has urged Beijing to relax its exchange rate regime, hinting that it keeps the value of the yuan artificially low to boost exports, but analysts say any gains in the value of the Chinese currency will be only gradual.
"China has shown that it will move at its own pace and will not be coerced by markets or criticism of its actions," said Societe Generale forex analyst Patrick Bennett.
Other potentially market-moving events include a speech by Federal Reserve Chairman Ben Bernanke later Monday.
Against regional Asian currencies, the dollar fell to 1,153.80 South Korean won from 1,160.65 Friday, to 1.3841 Singapore dollars from 1.3895, to 9,340 Indonesian rupiah from 9,415, and to 33.18 Thai baht from 33.32.