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Dollar drops on speculation that European finance ministers may push for stronger yen

Dollar drops on speculation that European finance ministers may push for stronger yen

The dollar dropped in Asia Thursday as speculation grew that Europe may push for a stronger yen in an upcoming meeting of finance chiefs from the Group of Seven wealthy nations.
The dollar was trading at 120.42 yen midafternoon, down from 120.95 yen late Wednesday in New York. The euro rose to US$1.2962, from US$1.2961.
The yen has dipped after the Bank of Japan decided last week to wait on raising interest rates, a move widely perceived as the central bank giving into political pressure.
But the yen reversed course as expectations grew that European officials will discuss the need for a robust yen at a Feb. 9-10 Group of Seven meeting in Essen, Germany.
"The exchange rate movements seen recently may last for a while," said Masashi Kurabe, senior manager at Bank of Tokyo-Mitsubishi UFJ's foreign-exchange trading department.
The dollar could fall below 119 yen if U.S. economic data disappoint the market, Kurabe said.
Others said the yen could get a boost if the Bank of Japan signals hints of raising interest rates in February, the next time its policy board meets.
The dollar was mostly higher against other regional currencies, climbing to 9,082 Indonesian rupiah from 9,065 the previous session, and to 44.242 Indian rupee from 44.16, but plunging to 34.525 Thai baht from 35.160.


Updated : 2021-05-17 22:28 GMT+08:00