Dollar Up Against Yen on Dip Buying, Nikkei Recovery
February 08 2016 - 12:58AM
Dow Jones News
By Hiroyuki Kachi
The dollar gained against the yen during Asia trade Monday,
lifted by dip buying and an improvement in risk sentiment on the
recovery by Tokyo stocks.
Around 0450 GMT, the dollar rose to Y117.34 from Y116.97 late
Friday in New York. The greenback also strengthened against the
euro, which declined to $1.1131 from $1.1153.
The WSJ Dollar Index, a measure of the dollar against a basket
of major currencies, was up 0.1% at 89.91.
Having hit a two-week low of Y116.28 Friday after a mixture of
good and bad spots in the U.S. jobs data for January, the greenback
ratcheted up in rangebound Asia trade in a sign that Japanese
importers and others were buying the dollar on dips earlier in the
morning session.
Although nonfarm payrolls grew at a pace lower than economists'
consensus, the unemployment rate dropped to the lowest level since
February 2008 and average hourly earnings climbed in what may give
the Federal Reserve a little more support for raising interest
rates this year.
Sentiment improved as Tokyo stocks erased earlier losses to turn
into positive territory, resulting in selling of the yen because of
its perceived safety. The Nikkei Stock Average was up 0.8%
midday.
"Investors will gradually sit on the sidelines to see what
comments Federal Reserve (Chairwoman Janet) Yellen will make at
congressional testimony in the middle of the week," said Yuzo
Sakai, manager of FX business promotion at Tokyo Forex & Ueda
Harlow. "We see the dollar is now back in a good position," he
said.
But "we will end up seeing a rangebound trade, unless something
happens to lessen the mood of risk aversion," such as gains in
stocks or oil prices, said Mr. Sakai.
The market showed muted reaction to a summary of opinions among
Bank of Japan policy setters released Monday about the decision at
a Jan. 28-29 policy meeting to set a minus 0.1% interest rate on
some yen deposits held by commercial banks at the BOJ.
The summary underlined a deep internal rift over the negative
interest rate policy introduced last month, with opponents warning
that it could spark a rate-cut "competition" with overseas central
banks.
In other currency trade pairs, the euro rose to Y130.59 from
Y130.45.
Interbank Foreign Exchange Rates At 00:50 EST / 0450 GMT
Latest Previous %Chg Daily Daily %Chg
Dollar Rates Close High Low 12/31
USD/JPY Japan 117.34-35 116.87-88 +0.40 117.35 116.87 -2.45
EUR/USD Euro 1.1131-34 1.1156-59 -0.22 1.1158 1.1129 +2.50
GBP/USD U.K. 1.4513-15 1.4501-03 +0.08 1.4517 1.4502 -1.51
USD/CHF Switzerland 0.9937-41 0.9905-09 +0.32 0.9943 0.9907 -0.81
USD/CAD Canada 1.3884-89 1.3915-20 -0.22 1.3918 1.3884 +0.35
AUD/USD Australia 0.7086-90 0.7067-71 +0.27 0.7105 0.7069 -2.73
NZD/USD New Zealand 0.6636-42 0.6623-29 +0.20 0.6643 0.6626 -2.84
Euro Rate
EUR/JPY Japan 130.60-64 130.39-43 +0.16 130.68 130.31 -0.13
Source: Tullett Prebon
Write to Hiroyuki Kachi at Hiroyuki.Kachi@wsj.com
(END) Dow Jones Newswires
February 08, 2016 00:43 ET (05:43 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.