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Dollar rises briefly on "tankan" survey, but then falls back on profit-taking

Dollar rises briefly on "tankan" survey, but then falls back on profit-taking

The dollar briefly rose in Asia Monday on a weaker-than-expected Japanese business sentiment survey but erased the gains and ended down on profit-taking.
The U.S. dollar was trading at 117.71 yen midafternoon, down from 117.87 yen late Friday in New York. The euro fell to US$1.3354 from US$1.3356.
Traders said the dollar was likely to rebound because U.S. interest rates were still higher than Japanese rates, heading to 119 yen.
The dollar has been rising on what are called yen-carry trades, in which investors borrow in yen to invest in dollar-denominated assets, taking advantage of the differences in interest rates.
"If fears grow about an economic slowdown in Japan, many investors will come to think that the BOJ won't raise rates soon," said Tsutomu Soma, senior trader at Okasan Securities.
The Bank of Japan's quarterly "tankan" survey Monday showed that the headline diffusion index for large manufacturers fell to 23 in March from 25 three months earlier, missing economists' average forecast of 24.
The dollar was mixed against other regional currencies, slipping to 936.8 South Korean won from 940.9 the previous session, while climbing to 43.205 Indian rupee from 43.120. It edged down to 33.081 Taiwan dollar from 33.090.


Updated : 2021-10-19 17:44 GMT+08:00