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Dollar strengthens against yen on rising oil prices

Dollar strengthens against yen on rising oil prices

The U.S. dollar rose against the Japanese yen in Asian trading yesterday as worries about surging oil prices set off some yen-selling.
The dollar was trading at 104.78 yen midafternoon in Tokyo, up 0.61 yen from late Thursday here and above the 104.53 yen it bought in New York later that day. The euro fell to US$1.3362 in Tokyo from US$1.3396 late Thursday but rose to 140.05 yen from 139.60 yen.
The dollar was mostly higher against other regional currencies, edging up to 1.6252 Singapore dollar from 1.6235 the previous day, and to 1,004.1 South Korean won from 1,000.8.
The dollar rose against the yen as Japanese importers and oil companies hedged against rising oil prices although overall trading was muted ahead of a three-day weekend in Japan. Markets will be closed Monday in Tokyo, a national holiday.
Players also refrained from too much buying or selling ahead of speeches later in the day by U.S. Federal Reserve Board Chairman Alan Greenspan and European Central Bank President Jean Claude Trichet.
But some sold the yen, thinking that the yen would be hurt by higher oil prices. The Japanese yen already came under selling pressure overnight in New York as crude oil prices surged to new records.
Japan meets its oil needs almost entirely through imports and the nation's currency is sensitive to oil price movements.