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US dollar lower vs yen in Asian trading

US dollar lower vs yen in Asian trading

The dollar fell against the yen in Asia on Thursday as Japanese exporters' selling offset bids from banks that are still short of the greenback for their year-end cash needs.
The dollar was trading at 114.20 yen midafternoon in Tokyo, down from 114.31 yen late Wednesday in New York. The euro rose to US$1.4506 from US$1.4490.
But many Tokyo players said the dollar may climb against the yen for a few more weeks before reversing course.
As European players return from the Boxing Day holiday, they will likely join banks and investors in pushing the dollar up, said Jun Kitazawa, head of foreign exchange at Brown Brothers Harriman Investment Services.
Liquidity-hungry banks usually buy the dollar around the year's end and into the new year, and speculators are taking advantage of such moves, traders said.
"Especially during the first two days of January, when Japanese exporters are still on holiday, it's easy for these speculators to lift the dollar up," Kitazawa said.
Once their cash needs are satisfied in the coming weeks, banks will likely stop buying the dollar heavily, which means U.S. currency may make a U-turn, traders said.
Against other Asian currencies, the dollar was mostly higher. It rose 0.29 percent against Philippine peso to 41.405 and also added 0.14 percent against Indian rupee to 39.440.