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Dollar rises against yen in Asian trading on North Korea fears

Dollar rises against yen in Asian trading on North Korea fears

The dollar rose against the yen in Asian trading Wednesday on fears of a North Korean nuclear test, although the Japanese currency later recovered most of its early losses on buying from Japanese exporters.
The U.S. dollar was trading at 118.02 yen by mid-afternoon in Tokyo, up from 117.89 yen from late Tuesday in New York. The euro fell to US$1.2726, from US$1.2727.
The Japanese currency was pressured by North Korea's announcement Tuesday that it will conduct a nuclear test. The U.S. dollar often is regarded as a safe haven in times of international unrest.
Traders said, however, the yen recouped most of its early losses on yen buying by Japanese exporters and profit-taking by short-term focused players.
Traders said it would be hard for currency players to determine their next move until they've had a chance to scrutinize upcoming key U.S. data and comments from European Central Bank President Jean-Claude Trichet following the bank's policy meeting Thursday.
Regional tensions might make players more wary about buying the Japanese currency until the Korean situation became clearer, traders said, although the news was unlikely to have a large impact on overall market sentiment.
"I think there would be no dramatic move in foreign exchange, unless there was an actual test for a nuclear bomb or something like that," said Shinichi Takasaka, foreign-exchange manager at Mitsubishi UFJ Trust & Banking Co.
Whereas it used to be just the yen that was affected by North Korean threats, "nowadays I think it's treated as a global problem, not just Japan's problem," Takasaka said.
Investors are now awaiting remarks from Federal Reserve Chairman Ben Bernanke and Vice-Chairman Donald Kohn later Wednesday in the global day for clues on whether the central bank has completed its monetary tightening cycle.
Against other Asian currencies, the dollar was mostly higher, rising to 9,216 Indonesian rupiah from 9,177 the previous day, and to 1.5844 Singapore dollar from 1.5820. It also rose to 49.995 Philippine peso from 49.820.


Updated : 2021-04-18 16:27 GMT+08:00