Yen slips in wake of Japan finance minister comments
AFPTOKYO--The yen slipped further Wednesday after Japan's finance minister issued a stern denial over claims Tokyo was manipulating the currency, as traders eye a Fed meeting wrapping up later in the day.
January 31, 2013, 12:06 am TWN
In afternoon Tokyo trade, the U.S. dollar gained to 90.92 yen, from 90.72 yen in New York on Tuesday, while the euro fetched 122.63 yen, from 122.42 yen.
The single currency also bought US$1.3488 against US$1.3493 in U.S. trade.
The U.S. dollar was lower against other Asia-Pacific currencies at 1,082.20 South Korean won from 1,085.95 won on Tuesday, to 53.49 Indian rupees from 53.91 rupees, and 40.66 Philippine pesos from 40.74 pesos.
The greenback also declined to 9,760 Indonesian rupiah from 9,778 rupiah and to SG$1.2350 from SG$1.2361.
The Australian dollar bought US$1.0469 from US$1.0443, while China's yuan fetched 14.61 yen against 14.56 yen.
Japan's currency resumed its months-long slide as Finance Minister Taro Aso said the unit was in a “correction phase” after soaring to record highs around 75 to the U.S. dollar in late 2011.
“The comment is nothing new so it can't push up the (U.S. dollar/yen) pair like a rocket anymore, but it still has some power left,” a senior dealer at a major bank in Tokyo told Dow Jones Newswires.
On Tuesday Japan's economic revitalization minister, Akira Amari, said the currency's slide was a result of the new government's drive to boost the deflation-plagued economy through spending and aggressive easing.
That has stoked criticism — including from German Chancellor Angela Merkel and Angel Gurria, head of the Organization for Economic Cooperation and Development — that Tokyo is manipulating its exchange rate policy.