Investor fears push Japanese yen lower in Asia
AFPTOKYO--The yen lost more ground in Asia on Friday, as traders bet that Japan's new government will heap further pressure on the central bank for aggressive easing aimed at boosting the economy.
December 29, 2012, 12:05 am TWN
The dollar fetched 86.44 yen in Tokyo after rising at one point to 86.63 yen — its highest level since August 2010 — and up from 86.09 yen in New York on Thursday.
The euro rose to a 17-month high of 114.68 yen before buying 114.48 yen in the afternoon from 113.97 yen. The European common currency was quoted at US$1.3241 from US$1.3235.
The dollar was mixed against other Asia-Pacific currencies, slipping to 1,070.90 South Korean won from 1,072.03 won on Thursday, to 30.63 Thai baht from 30.65 baht and to 9,733 Indonesian rupiah from 9,808 rupiah.
The greenback firmed to SG$1.2235 from SG$1.2230, to 54.87 Indian rupees from 54.76 rupees, to 41.26 Philippine pesos from 41.18 pesos and to NT$29.04 from NT$29.03.
The Australian dollar bought US$1.0374 from US$1.0355 while China's yuan rose to 13.85 yen from 13.73 yen.
“Unlike when the (dollar/yen) pair surged in February and March, there is less sense of overheating since everyone has been buying cautiously,” a senior dealer at a major Japanese bank told Dow Jones Newswires.
Data released early Friday showed factory output in November fell by a sharper-than-expected 1.7 percent month-on-month, spelling out the daunting task ahead for the new conservative government in reviving the economy.
Japan's economy has been hurt by a strong yen, turmoil in the key European market and the global economic slowdown.