Yen re­traces af­ter rally as an­a­lysts tip fur­ther weak­ness

The China Post - - BUSINESS INDEX & -

The yen re­treated against the U.S. dollar Thurs­day, giv­ing up strong gains from the pre­vi­ous ses­sion spurred by com­ments from the head of Ja­pan’s cen­tral bank as an­a­lysts pre­dicted fur­ther weak­ness ahead.

On Thurs­day, the U.S. dollar fetched 123.31 yen from 122.67 yen in New York trad­ing. The green­back topped the 125 yen level, a 13-year high, ear­lier this week. Bank of Ja­pan (BOJ) chief Haruhiko Kuroda sent the yen soar­ing Wed­nes­day when he said the Ja­panese cur­rency’s re­cent sell-off was “un­likely” to con­tinue, even if the U.S. Fed­eral Re­serve hikes in­ter­est rates. The dollar fell to 122.70 yen from around 124.50 yen in morn­ing trade. “Ev­ery­one was trou­bled with the re­cent plunge in the yen to the 125-level, so Kuroda’s com­ments be­came a wel­come rain in the drought,” said Daisaku Ueno, chief cur­rency strate­gist at Mit­subishi UFJ Mor­gan Stan­ley Se­cu­ri­ties. “But so long as the BOJ sticks to its eas­ing stance, it’s hard to see the yen con­tin­u­ing to rise,” he told Bloomberg News. Cap­i­tal Eco­nomics said it ex­pects the yen “to fall a lot more.”

The euro fetched US$1.1304 and 139.49 yen, against US$1.1324 and 138.92 yen in New York. The dollar weak­ened against most other Asia-Pa­cific cur­ren­cies, slip­ping to SG$1.3438 from SG$1.3481 on Wed­nes­day, to 1,107.75 South Korean won from 1,111.38 won, and to 33.64 Thai baht from 33.70 baht. The green­back also eased to 63.78 In­dian ru­pees from 63.92 ru­pees, and to 13,290 In­done­sian ru­piah from 13,310. It edged up to 44.98 Philip­pine pe­sos from 44.97 pe­sos.

The Aus­tralian dollar rose to 77.67 U.S. cents from 76.92 cents. The Chi­nese yuan bought 19.82 yen, un­changed from Wed­nes­day.

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