Connect to share and comment

Dollar rebounds against yen in Asia

PlacardEnlarge
(Globalpost/GlobalPost)

The dollar rebounded against the yen in Asia on Tuesday, clawing back some of the ground it lost after a flight to safety on concerns over the global economy.

The greenback was changing hands at 97.56 yen in Tokyo afternoon trade, from 96.56 yen in New York Monday afternoon as the solid Japanese bond market fuelled risk appetite, sparking yen selling and pushing up stocks.

The yen fell after the closely watched five-year bond auction went smoothly, currency dealers said.

"The auction result has raised hopes that the recently volatile JGB (Japanese government bond) market may regain its composure," said Dai Sato, senior currency dealer at Mizuho Corporate Bank.

The euro jumped to 127.57 yen from 125.98 yen in New York and firmed to $1.3074 from $1.3048.

US stock prices tumbled Monday, rocked by the deadly explosions in Boston as well as disappointing economic numbers in China, a key 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.

Citibank Japan chief forex strategist Osamu Takashima said experience shows the dollar's falls against the yen stemming from shocks such as terrorism are key points for buying on dips.

The benchmark Nikkei 225 index at the Tokyo Stock Exchange opened down 1.90 percent but narrowed its loss to end down 0.41 percent.

Markets was also keeping an eye on the Korean peninsula, with the North said to be lining up a missile launch with tensions rising between Pyongyang, Seoul and the United States.

The dollar was mixed against most other Asia-Pacific currencies.

It fell to 54.44 Indian rupees from 54.78 rupees on Monday, to 29.06 Thai baht from 29.10 baht, to Tw$29.89 from Tw$29.92, and to 1,115.01 South Korean won from 1,122.80 won while staying flat at Sg$1.2374.

The dollar rose to 41.33 Philippine pesos from 41.26 pesos and to 9,719 Indonesian rupiah from 9,716 rupiah,

The Australian dollar fell to $1.0370 from $1.0435 while the Chinese yuan inched down to 15.75 yen from 15.78 yen.

bur-mis/hg/dan

http://www.globalpost.com/dispatch/news/afp/130416/dollar-rebounds-against-yen-asia