ID :
11879
Tue, 07/08/2008 - 15:09
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https://oananews.org//node/11879
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Dollar climbs into mid-107 yen on Shirakawa's dim view of economy
TOKYO, July 8 (Kyodo) - The U.S. dollar rose into the mid-107 yen zone Monday in Tokyo on Bank of Japan Governor Masaaki Shirakawa's bleak view of the Japanese economy.
At 5 p.m., the dollar traded at 107.62-63 yen against 106.65-75 yen in London at 4 p.m. Friday and 106.72-75 yen in Tokyo at 5 p.m. Friday. Comparable data from Friday's New York trading were unavailable due to the Independence Day holiday.
The dollar moved between 106.66 yen and 107.65 yen during the day, changing hands most frequently at 107.30 yen.
The euro traded at $1.5624-5626 and 168.15-19 yen, against $1.5690-5700 and 167.45-50 yen at 4 p.m. Friday in London, and $1.5715-5718 and 167.74-78 yen late Friday in Tokyo.
The dollar initially eased within the upper 106 yen zone early in the morning, but soon entered 107 yen territory and tested higher ground on buying particularly by Japanese trading houses and importers, dealers said.
Currency dealers said Shirakawa's comments at a quarterly meeting of the central bank's branch managers in the morning and the BOJ's downward revision of its assessment of economic activities for eight of the country's nine regions led to selling of the yen, pushing the dollar higher.
Shirakawa said the growth of the Japanese economy ''has been slowing,''affected by rising energy and raw material costs.
Toru Umemoto, foreign exchange strategist at Barclays Bank Plc, said Shirakawa's comments reduced the possibility of an imminent interest rate hike in Japan.
The dollar was also boosted by market players who were reluctant to sell the U.S. currency on the belief that Group of Eight leaders may express support for a strong dollar at their annual meeting that began earlier in the day in Hokkaido, Japan.
''Should they mention (support for) a strong dollar, it will boost the possibility of a joint dollar-supporting intervention'' by the monetary authorities of major economies, said Akihiro Tanaka, senior trader at Resona Bank.
The leaders of Britain, Canada, France, Germany, Italy, Japan, Russia and the United States are taking part in a three-day summit meeting in the Lake Toya resort area of Hokkaido.
Market players, meanwhile, reduced their long-euro positions against the dollar on speculation that there will be a sizable conversion of the euro into the dollar in the near future because those who have invested in eurozone bonds could receive coupon payments.
Minoru Shioiri, chief manager of the foreign exchange and credit division at Mitsubishi UFJ Securities Co., added that market players were still adjusting their overbought euro holdings on remarks by European Central Bank President Jean-Claude Trichet, during a press conference Thursday after the ECB raised interest rates, that the bank has no bias regarding its future monetary policy.
Shioiri said speculation that the ECB could conduct multiple interest rate hikes within the year had prompted market players to build up excessive euro positions in recent weeks.
At 5 p.m., the dollar traded at 107.62-63 yen against 106.65-75 yen in London at 4 p.m. Friday and 106.72-75 yen in Tokyo at 5 p.m. Friday. Comparable data from Friday's New York trading were unavailable due to the Independence Day holiday.
The dollar moved between 106.66 yen and 107.65 yen during the day, changing hands most frequently at 107.30 yen.
The euro traded at $1.5624-5626 and 168.15-19 yen, against $1.5690-5700 and 167.45-50 yen at 4 p.m. Friday in London, and $1.5715-5718 and 167.74-78 yen late Friday in Tokyo.
The dollar initially eased within the upper 106 yen zone early in the morning, but soon entered 107 yen territory and tested higher ground on buying particularly by Japanese trading houses and importers, dealers said.
Currency dealers said Shirakawa's comments at a quarterly meeting of the central bank's branch managers in the morning and the BOJ's downward revision of its assessment of economic activities for eight of the country's nine regions led to selling of the yen, pushing the dollar higher.
Shirakawa said the growth of the Japanese economy ''has been slowing,''affected by rising energy and raw material costs.
Toru Umemoto, foreign exchange strategist at Barclays Bank Plc, said Shirakawa's comments reduced the possibility of an imminent interest rate hike in Japan.
The dollar was also boosted by market players who were reluctant to sell the U.S. currency on the belief that Group of Eight leaders may express support for a strong dollar at their annual meeting that began earlier in the day in Hokkaido, Japan.
''Should they mention (support for) a strong dollar, it will boost the possibility of a joint dollar-supporting intervention'' by the monetary authorities of major economies, said Akihiro Tanaka, senior trader at Resona Bank.
The leaders of Britain, Canada, France, Germany, Italy, Japan, Russia and the United States are taking part in a three-day summit meeting in the Lake Toya resort area of Hokkaido.
Market players, meanwhile, reduced their long-euro positions against the dollar on speculation that there will be a sizable conversion of the euro into the dollar in the near future because those who have invested in eurozone bonds could receive coupon payments.
Minoru Shioiri, chief manager of the foreign exchange and credit division at Mitsubishi UFJ Securities Co., added that market players were still adjusting their overbought euro holdings on remarks by European Central Bank President Jean-Claude Trichet, during a press conference Thursday after the ECB raised interest rates, that the bank has no bias regarding its future monetary policy.
Shioiri said speculation that the ECB could conduct multiple interest rate hikes within the year had prompted market players to build up excessive euro positions in recent weeks.
