ID :
9383
Thu, 06/05/2008 - 11:37
Auther :
Shortlink :
https://oananews.org//node/9383
The shortlink copeid
Dollar slips into upper 104 yen zone before U.S. economic data
Tokyo, June 5 Kyodo - The U.S. dollar slipped into the upper 104 yen range Wednesday in Tokyo, after hovering narrowly in the 105 yen zone for most of the day, as selling to lockin profits took the upper hand before the release of a string of U.S. economic data.
At 5 p.m., the dollar was quoted at 104.89-91 yen against Tuesday's 5 p.m. quotes of 105.04-14 yen in New York and 104.24-26 yen in Tokyo.
It moved between 104.80 yen and 105.30 yen during the day, changing hands most frequently at 105.15 yen.
The euro was quoted at $1.5440-5442 and 161.96-162.00 yen against late Tuesday's quotes of $1.5440-5450 and 162.28-38 yen in New York, and $1.5584-5586 and 162.45-49 yen in Tokyo.
The U.S. currency recovered to the 105 yen line, rising from the mid-104 yen range overnight in New York, after U.S. Federal Reserve Board Chairman Ben Bernanke expressed anxiety about the dollar's weakness via satellite at the International Monetary Conference in Spain on Tuesday.
''We are attentive to the implications of changes in the value of the dollar for inflation and inflation expectations,'' Bernanke said.
The Fed chief added that the central bank's policy at present seems ''well positioned,'' hinting that another interest rate cut is unlikely for the time being.
''The news spurred a dollar rally, especially because the remarks came at a time when market players were shunning the dollar'' on renewed fears about the health of U.S. financial firms, said Akihiro Tanaka, senior currency trader at the market trading division at Resona Bank.
The dollar maintained its strength in Tokyo but slipped into upper 104 yen territory in late afternoon with the entrance of European market players.
Market participants securing profits at the 105 yen range and selling on fears of a recurrence of a credit crisis pulled the U.S. currency lower, dealers said.
Ryohei Muramatsu, manager of Group Treasury Asia in Tokyo at Commerzbank, said that market players were unwilling to actively buy the dollar as they gradually ''began reading into the economic situation behind Bernanke's remarks.''''The Fed chief's remarks can be seen as a verbal (market) intervention,'' Muramatsu said, adding that fears of a possible plunge in the dollar may have prompted the central bank chief to make such ''unusual'' remarks.
Looking ahead, currency dealers said that market participants will be focusing on U.S. economic readings including May U.S. nonmanufacturing-sector data due out later Wednesday and May payroll data to be released later this week to gauge the health of the world's largest economy.==Kyodo
At 5 p.m., the dollar was quoted at 104.89-91 yen against Tuesday's 5 p.m. quotes of 105.04-14 yen in New York and 104.24-26 yen in Tokyo.
It moved between 104.80 yen and 105.30 yen during the day, changing hands most frequently at 105.15 yen.
The euro was quoted at $1.5440-5442 and 161.96-162.00 yen against late Tuesday's quotes of $1.5440-5450 and 162.28-38 yen in New York, and $1.5584-5586 and 162.45-49 yen in Tokyo.
The U.S. currency recovered to the 105 yen line, rising from the mid-104 yen range overnight in New York, after U.S. Federal Reserve Board Chairman Ben Bernanke expressed anxiety about the dollar's weakness via satellite at the International Monetary Conference in Spain on Tuesday.
''We are attentive to the implications of changes in the value of the dollar for inflation and inflation expectations,'' Bernanke said.
The Fed chief added that the central bank's policy at present seems ''well positioned,'' hinting that another interest rate cut is unlikely for the time being.
''The news spurred a dollar rally, especially because the remarks came at a time when market players were shunning the dollar'' on renewed fears about the health of U.S. financial firms, said Akihiro Tanaka, senior currency trader at the market trading division at Resona Bank.
The dollar maintained its strength in Tokyo but slipped into upper 104 yen territory in late afternoon with the entrance of European market players.
Market participants securing profits at the 105 yen range and selling on fears of a recurrence of a credit crisis pulled the U.S. currency lower, dealers said.
Ryohei Muramatsu, manager of Group Treasury Asia in Tokyo at Commerzbank, said that market players were unwilling to actively buy the dollar as they gradually ''began reading into the economic situation behind Bernanke's remarks.''''The Fed chief's remarks can be seen as a verbal (market) intervention,'' Muramatsu said, adding that fears of a possible plunge in the dollar may have prompted the central bank chief to make such ''unusual'' remarks.
Looking ahead, currency dealers said that market participants will be focusing on U.S. economic readings including May U.S. nonmanufacturing-sector data due out later Wednesday and May payroll data to be released later this week to gauge the health of the world's largest economy.==Kyodo
