Dollar rebounds against yen in Asian trade
AFPTOKYO -- The dollar rebounded against the yen in Asia Tuesday as markets eye key U.S. economic data for signs of a recovery in the world's largest economy.
August 14, 2013, 12:00 am TWN
The greenback bought 97.43 yen in afternoon Tokyo trade, strengthening from 96.90 yen in New York on Monday.
The euro was stronger at US$1.3302 and 129.62 yen, compared with US$1.3299 and 128.84 yen in U.S. trading.
The U.S. unit's rise on the yen came as the Nikkei stock index soared 2.57 percent by the close, with buoyant sentiment upping investors' risk sentiment which supports the dollar.
Dollar-yen trading and the local stock market are closely intertwined as the value of the yen is closely linked to the profitability of Japanese exporters.
The dollar has been weak since mid-July, and that was reinforced by a disappointing U.S. jobs report earlier this month which suggested the Federal Reserve might delay plans to scale back its huge bond-buying program, known as quantitative easing.
Markets are keeping a close eye on a string of data this week, including retail sales data later Tuesday, for clues about the state of the world's largest economy.
Tokyo is mulling lifting Japan's consumption tax in a bid to bring down a debt pile that is the worst in the industrialized world at more than twice the size of the economy.
Weaker-than-expected GDP data for the second quarter on Monday had nervous investors speculating that Abe may hold off the tax rise.
The dollar was higher against other Asia-Pacific currencies.
It firmed to 43.72 Philippine pesos from 43.66 pesos the previous day, to 1,116.45 South Korean won from 1,113.19 won, and to SG$1.2629 from SG$1.2609.
The greenback also strengthened to 61.42 Indian rupees from 60.73 rupees, to 31.23 Thai baht from 31.17 baht and to 10,308 Indonesian rupiah from 10,302 rupiah.
The Australian dollar slipped to 91.32 US cents from 91.76 cents.
The Chinese yuan fetched 15.92 yen from 15.79 yen.