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Greenback down against yen ahead of U.S. data

Greenback down against yen ahead of U.S. data

The U.S. dollar fell against the yen in Asian trade yesterday as market players waited to see whether the next batch of U.S. economic data will support recent optimism, dealers said.
The dollar eased to 93.97 yen in Tokyo afternoon trade, down from 94.56 in New York late Monday. The euro slipped to US$1.4293 after 1.4300 and to 134.33 yen from 135.25.
The yen rose as a rally on global stock markets faltered, dampening demand for risk-sensitive currencies.
The market now wants to see U.S. economic data, especially the consumer confidence index for August, to be released later yesterday, said Resona Bank currency analyst Shigeru Nakane.
"Now that the housing market has bottomed out and that a correction in manufacturing is coming to an end, we want to know how consumer spending and employment are faring," Nakane said.
Market optimism has grown since Federal Reserve chief Ben Bernanke said last week that the prospects for a global economic recovery "appear good."
Risk sensitive currencies such as the euro would be the main beneficiaries of any further improvement in market sentiment, while the safe-haven yen and the dollar would probably suffer if stocks extend recent gains, dealers said.
Traders were cheered by reports that Bernanke is set to be appointed for a second term as Fed chairman.
Against Asian currencies, the dollar rose to 1.4417 Singapore dollars from 1.4393 on Monday, to 1,247.00 South Korean won from 1,240.00, to NT$32.88 from 32.84 and to 48.57 Philippine pesos from 48.37. At the same time it edged down to 9,980.00 Indonesian rupiah from 9,985.00, while holding steady at 34.00 Thai baht.


Updated : 2020-12-03 12:59 GMT+08:00