Safe-haven yen increases in Asian trade
AFPTOKYO -- The yen rose in Asia Friday as investors flocked to the safe-haven currency, while the euro hit a new two-year high against the dollar on expectations of prolonged Fed easing.
October 26, 2013, 12:04 am TWN
The dollar fell to 97.02 yen in Tokyo afternoon trade from 97.29 yen in New York Thursday afternoon, and the euro turned down to 134.17 yen from 134.37 yen.
The European single currency bought US$1.3826 after earlier hitting US$1.3831, its highest level since November 2011. It was at US$1.3798 in U.S. trade.
A Tokyo stock slump and the Fed easing speculation weighed on the dollar following a weaker-than-expected U.S. jobs report, dealers said.
The euro and yen have benefited in recent weeks as a two-week U.S. government shutdown and weak economic data stoked speculation the Federal Reserve would delay a pullback on its monetary easing scheme — a negative for the dollar.
The euro has been winning support on rising consumer confidence in the eurozone and after Spain's central bank said Wednesday that the country had inched out of its two-year recession with timid growth in the third quarter — fuelling fragile hopes of a broader eurozone recovery.
However, a survey published Thursday showed that eurozone business activity slowed in October, coming off a 27-month high in September to highlight concerns the economy is recovering only slowly from recession.
Looking ahead, investors were keeping a close eye on China after data Thursday showed that the country's manufacturing activity hit a seven-month high in October.
The dollar was mixed against other Asia-Pacific currencies.
It slipped to 43.07 Philippine pesos from 43.11 pesos on Thursday, to 10,948 Indonesian rupiah from 11,265 rupiah, and to SG$1.2368 from SG$1.2374.
The dollar was unchanged at 31.13 Thai baht while it rose to 1,062.30 South Korean won from 1,055.50 won, and to 61.66 Indian rupees from 61.53 rupees.
The Australian dollar edged down to 96.15 U.S. cents from 96.49 cents, while the Chinese yuan was at 15.93 yen against 15.99 yen.