Yen Stronger Against Rivals as Nikkei Falls Further
February 10 2016 - 12:49AM
Dow Jones News
By Hiroyuki Kachi
The yen was stronger against its rivals during Asia trade
Wednesday, as another round of selloffs of Tokyo stocks dampened
sentiment to induce buying of the safe-haven Japanese currency.
The U.S. currency weakened to as low as Y114.25, just above its
15-month low of Y114.20 set on Tuesday, before regaining slightly
to Y114.43 around 0450 GMT. It was well below Y115.01 late Tuesday
in New York.
"This is just a continuation of the ongoing unstable market
tend," said Marito Ueda, director at FX Prime by GMO, referring to
somewhat choppy trade during the Asia session.
The Japanese currency has gained momentum in recent trade with
nervous investors seeking shelter from a deepening risk-aversion
mood caused by the continued plunge in oil prices and a big selloff
in global stocks. Adding to investors' concerns is the health of
the banking sector in Europe, especially Deutsche Bank AG, whose
shares have fallen sharply.
Sentiment was bruised once again during the Asia session
Wednesday, with the Nikkei sliding further. The benchmark index
dropped 4.0% at midday to 15440.41, on track to end lower after
losing 918.86 points Tuesday.
The index has lost all gains since the Bank of Japan implemented
a powerful monetary stimulus in October 2014, threatening to
undermine Prime Minister Shinzo Abe's economic-revival plan.
The prime minister said Wednesday he will carefully watch
Japan's stock markets, but added that the country's economy is on
"solid" footing and that many economists attribute the rout to
overseas rather than domestic factors.
Investors are now shifting their focus to semiannual
congressional testimony from Federal Reserve Chairwoman Janet
Yellen on Wednesday and Thursday, as they remain jittery over what
comments she will make to calm the turbulence in global financial
markets.
But some Tokyo-based dealers and analysts expect nothing in
particular that would give a positive boost to the market. "We are
not seeing the market that can move on Ms. Yellen's remarks," said
Mr. Ueda, adding that Ms. Yellen is unlikely to surprise in her
testimony and instead is more likely to provide mixed intelligence
that can be interpreted either way.
The Japanese currency also strengthened against the euro, which
dropped to Y129.25 from Y129.93 late Tuesday. The U.K. pound fell
to Y165.55 from Y166.35.
The Australian dollar dropped to Y80.62 from Y81.28.
In other currency-pair trading, the euro was largely unchanged
against the dollar with the common currency changing hands at
$1.1289 from $1.1294.
The WSJ Dollar Index, a measure of the dollar against a basket
of major currencies, was down 0.04% at 89.24.
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 114.39-40 115.12-13 -0.63 115.26 114.26 -4.91
EUR/USD Euro 1.1289-92 1.1292-95 -0.03 1.1312 1.1284 +3.96
GBP/USD U.K. 1.4465-67 1.4470-72 -0.03 1.4480 1.4456 -1.83
USD/CHF Switzerland 0.9725-29 0.9726-30 -0.01 0.9748 0.9711 -2.92
USD/CAD Canada 1.3918-23 1.3866-71 +0.37 1.3922 1.3867 +0.59
AUD/USD Australia 0.7043-47 0.7068-72 -0.35 0.7080 0.7038 -3.32
NZD/USD New Zealand 0.6605-11 0.6632-38 -0.41 0.6647 0.6605 -3.29
Euro Rate
EUR/JPY Japan 129.13-17 129.98-30 -0.65 130.12 129.09 -1.25
Source: Tullett Prebon
Write to Hiroyuki Kachi at Hiroyuki.Kachi@wsj.com
(END) Dow Jones Newswires
February 10, 2016 00:34 ET (05:34 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.