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Dollar up versus yen in Asia, but off session high amid lingering suprime-related jitters

Dollar up versus yen in Asia, but off session high amid lingering suprime-related jitters

The dollar rose against the yen in Asia Thursday but retreated from its intraday high as lingering jitters over U.S. credit markets took the steam out of bullish dollar sentiment triggered by a U.S. stock rally overnight.
The U.S. dollar was trading at 115.26 yen midafternoon, up from 114.88 yen late Wednesday in New York. The euro rose to US$1.3655 from US$1.3645.
Early in Asia, the U.S. currency rose as high as 116.24 yen, with the 1.9 percent rise overnight in the Dow Jones Industrial Average driving purchases of the dollar.
Tokyo traders said many players remain concerned the subprime mortgage meltdown may slow the U.S. economy and force an early rate cut by the Federal Reserve. The greenback could fall sharply to 114.00 yen soon, they added, if markets don't stabilize or the Fed doesn't cut its fund rate.
"Players seem to be getting accustomed to news related to the (subprime) loan issue, but remain on guard against uncertainties that may affect the U.S. economy and its monetary policy," said Hiroshi Imaizumi, a senior dealer at Resona Bank.
Players are now focusing their attention on several Japanese economic indicators coming out Friday, including July's core consumer price index and jobless rate, analysts said.
Against other regional currencies, the dollar was mixed. It rose to 1.5236 Singapore dollars from 1.5209 the previous day. It fell to 939.9 South Korean won from 941.9.


Updated : 2021-06-25 08:47 GMT+08:00