Dollar up against euro but weak before yen

TOKYO: The dollar edged up against the euro but stayed weak against the yen in Asia on Friday ahead of the release of cl
03 Feb, 2012

The euro fetched $1.3126 in early Asian trade, down from $1.3142 in New York late Thursday. The European common currency also eased to 100.00 yen from 100.18 yen while the dollar was at 76.18 yen against 76.23 yen in New York.

The dollar stayed weak against the yen even after Japanese Finance Minister Jun Azumi again warned of possible yen-selling intervention.

"Speculative yen-buying has been accelerating, with declining US interest rates being used as an excuse" by speculators to load up on the Japanese currency, Azumi told reporters.

"I have strong concerns regarding the question of whether this one-sided rise in the yen reflects Japan's real economic state... If there is one-sided movement, I will take decisive steps," he said.

The dollar briefly fell to 76.10 yen in Tokyo morning trade. The greenback was last below 76.00 yen in late October, when Japan stepped into markets to curb the yen's historic rise and try to protect exports.

Kengo Suzuki, forex strategist at Mizuho Securities in Tokyo, said the dollar would likely be sold regardless of whether the upcoming January US jobs data come in above or below expectations.

Weaker figures would justify the extension of the Federal Reserve's easy monetary policy while stronger figures would improve risk appetite, he said.

"In either case it will lead to a weaker dollar," he said. The euro remained under pressure while talks on a Greek debt write-down dragged on.

Negotiations with private investors to agree a huge write-down of Greek sovereign debt are at an "ultra difficult" stage, eurozone chief Jean-Claude Juncker said Thursday.

Copyright AFP (Agence France-Presse), 2012

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