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Dollar higher against yen in Asia amid thin holiday trading

Dollar higher against yen in Asia amid thin holiday trading

The dollar was higher against the yen and the euro in Asia on Monday as Japanese players adjusted positions amid thin trading before the year-end holidays.
The dollar was trading at 118.87 yen on the Tokyo foreign exchange market at 3 p.m. (0600 GMT) Monday, up from 118.76 yen late Friday in New York. The euro fell to US$1.3114, from US$1.3145.
With European, U.S. and most Asian players away for the Christmas holiday, Tokyo players including importers, exporters and institutional investors sold the yen and the euro for dollars to pocket profits and finish up their trading for the year.
However, traders said there was still a chance the greenback could hit the 120-yen mark if Japan's November consumer price index figures _ due out Tuesday _ come out weaker than expected.
"If the reading turns out to be zero or negative, players may be forced to sell the yen," said Hiroshi Imaizumi, senior dealer at Resona Bank. "Because such a result would greatly diminish players' expectations for a January rate hike by the Bank of Japan."
Economists at Bank of America said that improvement not only in Japan's CPI data, but also in consumer spending, was a must for them to believe the BOJ will tighten in January.
The dollar was largely flat against other Asian currencies. It rose 36.415 Thai baht from 36.260, while falling to 1.5420 Singapore dollars from 1.5422 and to 32.607 Taiwan dollars from 32.625.


Updated : 2021-04-19 12:14 GMT+08:00