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Dollar edges lower against yen, but still seen in a short-term uptrend

Dollar edges lower against yen, but still seen in a short-term uptrend

The dollar edged down slightly against the yen in Asia Wednesday, as selling of the unit by Japanese exporters just outweighed the buying of investors. But dealers said the greenback has now entered a short-term upward trend.
The dollar stood at 101.87 yen Wednesday afternoon, slightly lower than 101.92 yen in New York late Tuesday.
UBS and Lehman Brothers released plans overnight to increase their capital, which allayed immediate concerns of further sudden financial deterioration at major banks.
"There are still risks that other large banks may report additional write-downs, but they are likely to be announced with their countermeasures, as in the case of UBS," said Jun Kato, a senior dealer at Shinkin Central Bank.
Also bolstering the dollar are U.S. stock price gains, which have boosted confidence among players that keeping their money in dollar-denominated assets is safe.
"Players will check how much these positive factors can push the dollar up," Kato said. "Technical charts suggest resistance lies between 104 yen and 105 yen."
Elsewhere, the euro fell to US$1.5593 from US$1.5604 New York overnight. The currency may decline at least for a couple of days, dealers said, as the dollar's ascent overnight has given players a big incentive to take profits from the euro's recent surge.
Against other Asian currencies, the dollar was mixed. It was trading higher versus the Philippine peso at 41.530, but fell against the Taiwan dollar to 30.298.