Thursday, March 15, 2012

Yen continues to fall in Asia

TOKYO: The yen continued its fall against major currencies in Asian trade Thursday, as an improving outlook for the US economy and receding concerns over the European financial crisis boosted risk appetite.

The dollar rose to 84.13 yen in Tokyo against 83.68 yen late Wednesday in New York, while the euro also advanced to 109.42 yen compared with 109.08 yen.

Stop-loss buying orders may be placed right above the 84.00 mark, which could push up the dollar even higher against the yen, Junichi Ishikawa, forex analyst at IG Markets Securities, told Dow Jones Newswires.

The euro bought $1.3006, compared with $1.3032 in New York.

"It's the strong dollar that's pulling the euro down," Masashi Murata, senior currency strategist at investment bank Brown Brothers Harriman in Tokyo, told Dow Jones Newswires.

He added that the euro faces some selling pressure as it lacks positive cues to push it up.

The dollar may climb against the yen as high as 84.50 during the session, backed by rising US treasury yields and an improving outlook for the world's largest economy, Murata said.

But its climb may gradually slow down as the market awaits a string of US indicators set for release later, he said.

Hints from the Federal Reserve that it sees some improvement in the economy, and the banking sector's collective passing of a tough stress test encouraged the push into the dollar and US stocks.

US bond prices sank, sending yields to nearly five-month highs. Prices and yields move in opposite directions.


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Source From Channel News Asia

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