Yen gives up early gains to end day weaker again in forex trade
AFPTOKYO--The yen slipped back into its recent weakening trend on Wednesday, giving up early gains, with dealers saying the reversal was largely down to dollar buying among importers and investors.
January 10, 2013, 12:04 am TWN
The greenback bought 87.43 yen in afternoon trade in Tokyo, up from 86.97 yen late in New York Tuesday, and from 86.87 yen on Wednesday morning.
The euro bought 114.43 yen, up from 113.75 yen in New York and 113.64 yen in Tokyo in morning trade, while the single currency edged up to US$1.3088 from US$1.3079.
There were few fresh trading cues with dollar-buying coming from importers, Japanese retail investors and fund investors overseas, Tokyo dealers said.
“I believe the yen's weakening trend is still intact,” Daisaku Ueno, senior foreign exchange and fixed income strategist at Mitsubishi UFJ Morgan Stanley, told Dow Jones Newswires.
Japan's currency has come under selling pressure since the nation's new Prime Minister Shinzo Abe vowed before his successful election last month to push the Bank of Japan for more aggressive monetary easing.
After taking office at the end of December, he repeated that pledge as he centers his first weeks in power on fixing the limp economy.
On Tuesday, Japan's new finance minister said Tokyo would buy bonds issued by Europe's permanent bailout fund to help soothe debt problems in the eurozone — a major Japanese export market — and stabilize the yen.
The dollar was broadly lower against other Asia-Pacific currencies.
It slipped to SG$1.2261 from SG$1.2305 on Tuesday, to 30.36 Thai baht from 30.43 baht, to 40.77 Philippine pesos from 40.87 pesos, and to 1,061.55 South Korean won from 1,063.10 won.