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US dollar dips vs yen in Asian trading, but traders see dollar climbing

US dollar dips vs yen in Asian trading, but traders see dollar climbing

The dollar dipped against the yen in Asia Wednesday but traders said they expect the dollar would remain on an upward trend for the time being.
The dollar was trading at 114.14 yen in midafternoon in Tokyo, down slightly from 114.18 yen late Tuesday in Tokyo. The euro rose to US$1.4414 from US$1.4405.
Early in the session, the dollar briefly rose to a high of 114.39 yen. But selling by Japanese exporters put a lid on its rise. Foreign exchange markets in Europe and U.S. were closed overnight for Christmas.
Traders expect the greenback to climb to the 115 yen mark in the near term, due mostly to strong demand for the U.S. currency from non-Japanese investment funds, which usually make payments in dollars at the end of the year, traders say.
"The dollar will likely remain on a solid footing (against the yen) for a while," said Akio Shimizu, head of foreign exchange trading at Mitsubishi UFJ Trust and Banking. The dollar "could extend gains steadily after U.S. and European players return from their Christmas vacations."
Shimizu also said financial markets have recently been regaining their composure worldwide on reports that major U.S. financial institutions are getting capital injections from several sovereign wealth funds, which is supporting the dollar.
Against other regional currencies, the dollar was mixed. It rose 0.11 percent against Indonesian rupiah to 9,412 while losing 0.06 percent against South Korean won to 938.8.