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U.S. dollar drops against yen in the wake of Bhutto's assassination

U.S. dollar drops against yen in the wake of Bhutto's assassination

The U.S. dollar slipped against the yen in Asian trade yesterday as market players reacted nervously to weak U.S. economic data and the assassination of Pakistani opposition leader Benazir Bhutto, dealers said.
The U.S. dollar dipped to 113.33 yen in Tokyo afternoon trade from 113.67 in New York late on Thursday, when the greenback had already weakened.
The euro eased to US$1.4606 from US$1.4622 and to 165.55 yen from 166.27.
The assassination of Bhutto and weaker-than-expected U.S. manufacturing data prompted market players to scale back risky "carry trades" that involve borrowing cheaply in countries like Japan to invest overseas.
Bhutto's death Thursday in Pakistan raised geopolitical concerns about stability in the nuclear-armed country, dealers said.
News of her death weighed on share prices in New York and Asia, but some analysts were hopeful that markets would recover.
"I see the incident as a temporary negative factor for share prices," said Shigeru Nakane, senior chief manager of Resona Bank.
The U.S. dollar weakened overnight after U.S. government data showed new orders for U.S. durable goods rose by a much weaker than expected 0.1 percent.
Against regional Asian currencies, the U.S. dollar fell to 1.4484 Singapore dollars from 1.4515 on Thursday, to NT$32.490 from NT$32.519 and to 937.65 South Korean won from 939.70.
But the U.S. unit rose to 9,427.50 Indonesian rupiah from 9,410.00, to 30.11 Thai baht from 30.10 and to 41.40 Philippine pesos from 41.39.


Updated : 2021-01-18 06:20 GMT+08:00