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U.S. dollar rises further against yen in Asia

U.S. dollar rises further against yen in Asia

The U.S. dollar rose further against the yen in Asia yesterday as financial worries mounted ahead of a key meeting on the economic crisis later this week.
The greenback was slightly weaker against the euro as traders took profits from its recent gains.
The U.S. dollar gained to 99.00 yen in Tokyo morning trade from 98.83 in New York late Monday. The euro climbed to US$1.2640 from 1.2624 and to 125.10 yen from 124.49.
The U.S. dollar continued to benefit from uncertainty over the outlook for the global economy and financial system, said Mitsubishi UFJ Trust and Banking Corp. chief forex manager Hideaki Inoue.
"Investors are worried about the health of the financial system and will remain so until the United States clarifies its bad bank plan," he added, referring to the idea of a special bank to take on "toxic" assets.
Wall Street indexes are at their lowest level in 12 years while Japan's Nikkei has fallen to a 26-year nadir. Although the financial crisis began in the United States, the U.S. dollar is still seen as a relatively safe investment compared with many other currencies because it is so widely used around the world.
Traders were looking ahead to a meeting this weekend in London of finance chiefs from the G20 industrial and developing nations, ahead of a leaders' summit next month on the economic crisis.
"The ministers are likely to discuss the progress that their governments have made in terms of policies. If they comment on fresh measures, that could reassure investors," said Inoue.
The British pound was slightly higher at US$1.3830, a day after slipping below the 1.40 level to hit a more than one-month low as the British government moved to take a majority stake in the troubled Lloyds Banking Group.