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U.S. dollar up against yen

U.S. dollar up against yen

The U.S. dollar rose against the yen in Asia yesterday as global markets awaited the results of "stress tests" on major U.S. banks and a European Central Bank meeting later this week. With the Japanese markets closed from yesterday until tomorrow due to the Golden Week public holiday, the greenback climbed to 99.43 yen from 99.08 late Friday in New York.
The yen has been slipping against the greenback as the latest gloomy consumer and unemployment data from Japan underlined the woes of the world's second largest economy. The euro meanwhile climbed to US$1.3332 from 1.3265 and to 132.59 yen from 131.34.
Analysts said however that the U.S. dollar and yen could gain some support, with the ECB widely expected to announce further interest rate cuts at the conclusion of its meeting on Thursday.
"Markets are expecting a lot from the ECB in the form of another 25 basis point rate cut to 1.0 percent and also non-standard measures to ease credit," DBS Bank said in a research note.
A rate cut would ease investor demand for the European currency, which offers higher rates than the dollar or the yen.
Investors were also jittery waiting for U.S. authorities to announce on Thursday the results of "stress tests" on the health of the biggest 19 banks that received public bailouts, DBS said.
Favorable results could boost the U.S. dollar while a negative verdict could have the opposite effect, analysts said.


Updated : 2021-04-12 22:21 GMT+08:00