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Japanese yen gains in Asia amid risk aversion

Japanese yen gains in Asia amid risk aversion

The yen gained against other currencies in Asian trade yesterday as fresh worries over the outlook for the global economy prompted buying of "safe-haven" units, dealers said.
The euro fell to 135.25 yen in Tokyo afternoon trading from 135.89 yen in New York late Tuesday while changing hands at US$1.4822 against US$1.4810 in New York. The dollar dropped to 91.22 yen from 91.77.
A disappointing report on consumer sentiment in the United States sparked concerns that the world's largest economy may not be recovering as quickly as hoped, reducing demand for growth-sensitive currencies like the euro.
"The euro will likely keep falling for now because share markets are bearish and unstable again, pushing currency dealers back into risk-aversion mode," Yuichiro Harada, a dealer at Mizuho Corporate Bank, told Dow Jones Newswires.
Other high-yielding units also declined against the yen. These currencies usually weaken when risk appetite deflates.
"The market mood has definitely soured this week and there is little sign of any turnaround. This is good for the dollar but bad for risk trades," Calyon analyst Mitul Kotecha wrote in a note to clients.
Investors are worried that a premature raise in global interest rates may hamper a nascent recovery at a time when major economies are still limping out of recession, dealers said.
Traders were jittery ahead of monetary policy meetings in Malaysia, Norway and New Zealand this week, following a recent rate hike in Australia that fuelled speculation other central banks may follow suit.
In regional Asian trade, the dollar rose to 1,194.45 South Korean won from 1,183.80 a day earlier and to 9,610.00 Indonesian rupiah from 9,537.00. The greenback also firmed to 47.41 Philippine pesos from 47.08, to 1.3999 Singapore dollars from 1.3961, and to NT$32.49 from NT$32.36. It held steady at 33.42 Thai baht.


Updated : 2021-06-19 12:36 GMT+08:00