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Yen inches up after recent selling spree

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(Globalpost/GlobalPost)

The yen inched up against other major currencies in Asia on Wednesday after the recent selling spree on the Bank of Japan's massive monetary easing.

The dollar fetched 99.01 yen in Tokyo morning trade against 99.18 yen in New York Tuesday afternoon. The euro also sank to 129.56 yen from 129.73 yen while staying flat at $1.3081.

The dollar briefly fell below 99.00 yen on profit taking and 'safe haven' support on reports North Korea was readying to fire a missile, but the move has not received any sizable follow-through, National Australia Bank said.

"Levels above 100 yen continue to look like only a matter of time away," the bank said in a note.

North Korea said Tuesday the Korean peninsula was headed for "thermo-nuclear" war and advised foreigners to consider leaving South Korea.

Yonhap news agency Tuesday cited South Korean intelligence as saying the North had completed preparations for an expected missile test-launch -- possibly to coincide with April 15 celebrations for the birthday of late founder Kim Il-Sung.

Junya Tanase, chief forex strategist at JPMorgan in Tokyo, said it was hard to predict the impact of North Korea on the yen but any bad news regarding the country could spur buying of the safe-haven currency.

It will probably be tough for the dollar to test the 100-yen mark during Asia trading hours on Wednesday, he told Dow Jones Newswires.

But such a rise is possible later in the global day if the minutes of the Federal Reserve's policy board and speeches from several Fed officials are in favour of pushing US long-term interest rates higher, he added.

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http://www.globalpost.com/dispatch/news/afp/130409/yen-inches-after-recent-selling-spree