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Greenback gains momentum against yen, euro

Greenback gains momentum against yen, euro

The U.S. dollar regained momen-tum against the euro and yen in Asian trade yesterday but short-term volatility was likely to continue with investors showing renewed appetite for risk, analysts said.
In afternoon trade, the dollar changed hands at 98.92 yen, up from 98.78 yen in New York trade late Monday. Markets in Japan are closed for the Golden Week holiday and will reopen Today.
The euro traded at US$1.3351, down from US$1.3408 in New York late Monday and against the yen, it fell to 132.12 from 132.46.
"Sentiment has become so upbeat that it is difficult to go against the trend without a clear negative reversal trigger," said Dariusz Kowalczyk, chief investment strategist with SJS Seymour financial trading firm.
Global stock markets rose sharply Monday and were expected to extend their gains yesterday.
When the market is upbeat, investors usually bet on currencies that are riskier but offer higher interest rates, such as the euro.
But the results of the "stress tests" yesterday on the 19 biggest U.S. banks that have received public aid to help them weather the global financial crisis may jolt investor risk appetite, analysts said. This would prompt investors to bet on the dollar, which is considered an international safe haven currency.
Against other Asian currencies, the dollar fell to 1,271.9 South Korean won from 1,273.05 on Monday, to 47.839 Philippine pesos from 48.095, to 1.4742 Singapore dollars from 1.4768, to 10,415 Indonesian rupiah from 10,515 and to 35.135 Thai baht from 35.185.
It rose to NT$33.068 from NT$32.987.


Updated : 2021-06-15 13:01 GMT+08:00