Dollar soars against yen in Asia

0
31

The euro was mixed, buying $1.2906 and 138.08 yen from $1.2916 and 138.02 yen in US trade.

TOKYO (AFP) – The dollar soared to a fresh six-year high in Asia on Thursday, while the pound recovered on easing concerns about Scotland s independence vote and hints of a Bank of England rate hike.

In afternoon Tokyo trading, the greenback fetched 106.95 yen, after briefly shooting past the 107 yen level, marking its highest point since September 2008 during the global financial crisis, and up from 106.85 yen in New York.

The euro was mixed, buying $1.2906 and 138.08 yen from $1.2916 and 138.02 yen in US trade.

The yen s sustained weakness came as Japanese Prime Minister Shinzo Abe met Thursday afternoon with Bank of Japan Governor Haruhiko Kuroda, who repeated a pledge to expand monetary easing measures, if necessary, as the bank looks to reach 2.0 percent inflation by next year.

That target is a key part of Tokyo s bid to conquer the deflation that weighed on Japan s economy for years.

“If we face difficulty achieving the (inflation) goal, we would adjust monetary policy without hesitation, even if it takes the form of additional easing or anything else,” Kuroda told reporters.

As speculation builds that the US Federal Reserve will raise rates sooner than later, the divergence between the monetary policies of the US and those of Japan and Europe — both of which are expected to ease further — have been lifting the dollar against the euro and yen.

Deutsche Bank said the dollar-yen rate was on course to pass the 110 level as the US economy recovers and the Federal Reserve tapers its stimulus programme.

But Kengo Suzuki, chief forex strategist at Mizuho Securities, warned that the rapid ascent was “one-sided and overheated”, telling Dow Jones Newsires: “We can expect an adjustment waiting to happen.”

“I get the impression that the market is trying to test how far (the dollar-yen rate) can reach.”

The pound rose to $1.6201, well up from a 10-month low of $1.6078 earlier this week, after a new survey showed that opposition to the Scottish independence campaign had restored its lead, soothing concerns about the economic impact of Britain fragmenting.

Comments from Bank of England chief Mark Carney suggesting it could lift interest rates as soon as early 2015 also boosted the British unit.

The dollar was mixed against other Asia-Pacific currencies.

It strengthened to 1,036.00 South Korean won from 1,035.10 won, to 60.88 Indian rupees from 60.78 rupees, to 11,838.00 Indonesian rupiah from 11,795.00 rupiah, and Tw$29.99 from Tw$29.98.

The dollar weakened to Sg$1.2632 from Sg$1.2647, to 32.12 Thai baht from 32.15 baht, and to 43.91 Philippine pesos from 43.92 pesos.

The Australian dollar rose to 91.66 US cents from 91.63 US cents.

The Chinese yuan rose to 17.44 yen from 17.33 yen.

2014-09-11

LEAVE A REPLY

Please enter your comment!
Please enter your name here