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Dollar edges up against yen in Asia

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(Globalpost/GlobalPost)

The dollar recouped some ground against the yen in Asia on Tuesday, while holding steady against the euro amid a flight to safety following the Boston blasts and concerns over the global economy.

The dollar was changing hands at 97.06 yen in Tokyo midday trade, recovering from 96.56 yen in New York Monday afternoon although it was still sharply down from levels around 98 yen in Tokyo on Monday.

The euro rose to 126.51 yen from 125.98 yen in New York while changing hands at $1.3040 against $1.3048 in US trade.

US stock prices tumbled Monday, rocked by deadly explosions in Boston as well as disappointing economic growth in China, the engine of global economic growth. The price of gold tumbled to its lowest level in two years.

At least three people were killed and more than 100 were wounded when explosions struck the Boston Marathon, one of America's top sporting events, on Monday.

As cities from New York to Los Angeles went on high alert, markets took fright.

"Concern that this could be a terrorist attack has momentarily hit risk appetite," said Daisaku Ueno, senior foreign exchange strategist at Mitsubishi UFJ Morgan Stanley.

"But the pair (dollar v yen) seems to be recovering," he told Dow Jones Newswires.

The benchmark Nikkei 225 index at the Tokyo Stock Exchange opened down 1.90 percent but narrowed its loss to 1.06 percent by the midday break.

The dollar was also under pressure due to weak Chinese growth data Monday and drops in US shares as well as declines in crude oil, gold and silver, said Citibank Japan chief forex strategist Osamu Takashima.

But experience says the dollar's falls against the yen stemming from shocks such as terrorism are key points for buying on dips, he said.

Markets also continued to be on watch for a missile launch by North Korea.

As for the euro against the dollar, Ueno of Mitsubishi UFJ tipped it in a $1.2950-1.3150 range with no strong direction.

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http://www.globalpost.com/dispatch/news/afp/130415/dollar-edges-against-yen-asia