Friday, Aug 17, 2012

-- Dollar's upward momentum vs yen eases

-- Strong offers from Japanese exporters

-- U.S. bond yields, consumer sentiment data eyed

 

   By Kosaku Narioka 

 

The dollar's recent upward momentum against the yen eased somewhat on Friday in Asia amid offers by Japanese exporters as the greenback approached the Y80 mark.

The dollar has trended higher against the Japanese currency in recent days as U.S. Treasury yields continued their advance amid some improvement in U.S. economic indicators.

While bids from Japanese importers supported the dollar, offers from Japanese exporters capped the U.S. unit's upside, Tokyo dealers said.

"It may take a while before the dollar gets to Y80," said Michiyoshi Kato, senior vice president of forex sales at Mizuho Corporate Bank. "There are a few hurdles before that."

"The (dollar-yen) pair is stuck between bids and offers today," said Motonari Ogawa, senior dealer at Barclays Bank. "At any rate, (U.S. Treasury) yields will likely continue to dictate trading."

Benchmark 10-year notes yield stood at 1.842% late Thursday in New York after touching a three-month high of 1.861%.

U.S. economic indicators and bond yields will likely continue to be the market's main focus for at least the rest of the month, Tokyo dealers said.

Later Friday, the market will pay attention to University of Michigan consumer sentiment data for August.

On Aug. 31, Federal Reserve Chairman Ben Bernanke delivers his annual speech in Jackson Hole, Wyoming. Market participants are primed for any signal on the Fed's monetary policy outlook.

The dollar was at Y79.34 as of 0450 GMT from Y79.35 late Thursday in New York.

The euro was at $1.2342 from $1.2358 and was at Y97.93 from Y98.07.

The pound was at $1.5702 from $1.5733. The dollar was at CHF0.9730 from CHF0.9721.

The Wall Street Journal Dollar Index, which measures the dollar against a basket of currencies, was at 71.70 from 71.61. The ICE dollar index was at 82.482 from 82.384.

 

Interbank Foreign Exchange Rates At 00:50 EST / 0450 GMT 

 

 

                           Latest       Previous   %Chg    Daily    Daily   %Chg 

Dollar Rates                               Close            High      Low  12/31 

 

 

USD/JPY Japan            79.33-36       79.34-37  -0.01    79.40    79.24  +3.16 

EUR/USD Euro            1.2342-44      1.2356-59  -0.12   1.2361   1.2341  -4.76 

GBP/USD U.K.            1.5700-04      1.5731-35  -0.20   1.5738   1.5702  +1.03 

USD/CHF Switzerland     0.9728-32      0.9718-22  +0.10   0.9731   0.9718  +3.82 

USD/CAD Canada          0.9872-74      0.9865-69  +0.06   0.9873   0.9864  -3.30 

AUD/USD Australia       1.0470-72      1.0509-13  -0.38   1.0528   1.0468  +2.57 

NZD/USD New Zealand     0.8094-96      0.8101-08  -0.12   0.8123   0.8094  +4.10 

 

Euro Rate 

EUR/JPY Japan            97.92-96       98.04-08  -0.12    98.11    97.88  -1.63 

 

 

Source: ICAP PLC 

 

Write to Kosaku Narioka at kosaku.narioka@dowjones.com

(END) Dow Jones Newswires

August 17, 2012 01:03 ET (05:03 GMT)