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Dollar slips against yen in Asia

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(Globalpost/GlobalPost)

The dollar lost earlier gains against the yen in Monday afternoon Asian trade as the Nikkei stock index changed direction, analysts said.

The greenback fell against the Japanese unit to 101.10 yen from 101.14 late Friday in New York.

The euro was changing hands at $1.2816 and 129.57 yen in Monday afternoon trade, compared with $1.2832 and 129.78 yen in New York Friday.

"The spot is reacting to movements in share prices," Junichi Ishikawa, market analyst at IG Securities in Tokyo, told Dow Jones Newswires.

The Nikkei stock index erased earlier gains in the afternoon session, dropping 1.40 percent by the closing bell.

Daisaku Ueno, senior forex strategist at Mitsubishi UFJ Morgan Stanley, told Dow Jones Newswires that investors are waiting for Thursday's press conference by the Japanese central bank chief.

The Bank of Japan will begin its two-day policy board meeting on Wednesday, but Ueno said no new easing measures were likely to be announced.

"Focus will rather be on what BoJ governor (Haruhiko) Kuroda will have to say at his post-meeting presser," he said.

On Wall Street Friday, the dollar powered higher, sparked by the June US employment report from the Labor Department, which showed better-than-expected jobs creation of 195,000 net new positions, for a solid second quarter.

That added to expectations the Federal Reserve would begin reeling in its quantitative easing (QE) stimulus programme later this year and that higher dollar interest rates were in view in the medium term.

Bond yields shot up: the 10-year Treasury rose to 2.72 percent from 2.50 percent while the 30-year bond pushed to 3.68 percent from 3.50 percent.

The dollar was higher against other Asia-Pacific currencies.

The Indian rupee continued its precipitous drop, skidding to 60.98 rupees to the dollar from 60.25 rupees as investors continue to move out of emerging markets.

The greenback firmed to Sg$1.2855 from Sg$1.2762 on Friday, to Tw$30.16 from Tw$30.05, to 1,152.24 South Korean won from 1,142.55 won and to 31.46 Thai baht from 31.15 baht.

It also rose to 10,010 Indonesian rupiah from 9,940 rupiah and to 43.73 Philippine pesos from 43.42 Philippine pesos.

The Australian dollar remained weak at 90.48 cents, and the Chinese yuan changed hands at 16.48 yen against 16.35 yen.

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http://www.globalpost.com/dispatch/news/afp/130708/dollar-slips-against-yen-asia