TOKYO: The dollar firmed against the yen in Asia Friday, shrugging off weak US growth figures as a rebound in Tokyo stocks boosted risk sentiment and pulled investors away from the safe-haven yen.
The greenback fetched 101.05 yen in Tokyo morning trade from 100.74 yen in New York late Thursday, while the euro also strengthened to 131.79 yen from 131.39 yen. The European single currency was flat at $1.3042.
"Previously the yen's weakening raised expectations for an improvement in corporate profits and pushed Japanese stocks higher, but these days gains in stocks are leading to a weaker yen," a senior dealer at a major Japanese trust bank told Dow Jones Newswires.
Yen trading and Japanese stocks are closely interlinked as the value of the unit affects the competitiveness of the country's exporters overseas.
Tokyo's benchmark Nikkei 225 index was up about two percent Friday morning on the back of buying on dips after tumbling more than five percent the previous day to a five-week low.
0 comments:
Post a Comment