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Yen turns up as economic jitters resurface

Yen turns up as economic jitters resurface

The yen rebounded in Asia yesterday from recent five-month lows against the U.S. dollar and the euro as worries over the health of the U.S. economy resurfaced, dealers said.
The U.S. dollar was changing hands at 100.44 yen in Tokyo early afternoon trade, down from 101.02 yen in New York late Monday. The euro fell to 134.24 yen from 135.52, and to US$1.3365 from 1.3417.
A drop in stock prices on Wall Street on Monday sparked renewed risk aversion, prompting investors to buy the yen for the euro and other currencies, said Yuji Saito, head of forex at Societe Generale in Tokyo. The yen's safe haven status has appeared to wane recently due to growing fears about the Japanese economy, while the U.S. dollar has gained from world leaders' pledge to fight the global crisis at a recent Group of 20 summit. Some traders said the market view toward the greenback may have become too positive considering the poor health of the U.S. economy.
"The market had been strangely optimistic after the G-20 meeting," said Saito. "Market players had bought U.S. dollars in the face of weak (U.S.) data, saying the figures were not as bad as expected. They are now recovering their cool."
The U.S. dollar had risen at the start of the week despite figures Friday showing the U.S. jobless rate hit a 25-year high of 8.5 percent in March.
Dealers said the greenback was pressured in Asia by fresh fears about U.S. auto giant General Motors, whose new government-backed boss said over the weekend that the embattled carmaker was preparing for bankruptcy if necessary.


Updated : 2021-10-19 23:50 GMT+08:00