The yen rose in Asia on Wednesday as players refrained from risky bets after a global stock market rally fizzled out amid concerns about the
economic impact of the credit crunch. The dollar slipped to 101.73 yen in Tokyo morning trade from 102.01 yen late Tuesday in New York. The euro fell to 137.77 yen after 139.05, and to 1.3570 dollars from 1.3618. "Investors remain cautious, although panic selling (on global stock markets) seems to have subsided," said Mizuho Corporate Bank analyst Masaki Fukui. Players bought the yen as the currency is seen as a relatively safe haven amid the financial crisis, dealers said. The Japanese currency tends to rise in times of market turmoil as it has been heavily sold in the past to fund risky investments. "Worries over banks' bankruptcies are gone, so there will be no panic yen-buying anymore," Shinkin Central Bank senior dealer Hiroshi Yoshida told Dow Jones Newswires. "But players are pessimistic about the global economy ahead. The yen will likely appreciate gradually in the long-term," he said. Tokyo stocks were slightly lower in morning trade Wednesday after a Wall Street rally faded overnight. US authorities pushed forward with a plan to inject up to 250 bn dollars in capital into struggling banks. Janet Yellen, the head of the San Francisco branch of the Federal Reserve, said that the United States "appears to be in a recession." Barclays Capital analysts predicted the dollar would fall back below 100 yen by the end of the year because it will take time for the US authorities to resolve the credit crunch.
economic impact of the credit crunch. The dollar slipped to 101.73 yen in Tokyo morning trade from 102.01 yen late Tuesday in New York. The euro fell to 137.77 yen after 139.05, and to 1.3570 dollars from 1.3618. "Investors remain cautious, although panic selling (on global stock markets) seems to have subsided," said Mizuho Corporate Bank analyst Masaki Fukui. Players bought the yen as the currency is seen as a relatively safe haven amid the financial crisis, dealers said. The Japanese currency tends to rise in times of market turmoil as it has been heavily sold in the past to fund risky investments. "Worries over banks' bankruptcies are gone, so there will be no panic yen-buying anymore," Shinkin Central Bank senior dealer Hiroshi Yoshida told Dow Jones Newswires. "But players are pessimistic about the global economy ahead. The yen will likely appreciate gradually in the long-term," he said. Tokyo stocks were slightly lower in morning trade Wednesday after a Wall Street rally faded overnight. US authorities pushed forward with a plan to inject up to 250 bn dollars in capital into struggling banks. Janet Yellen, the head of the San Francisco branch of the Federal Reserve, said that the United States "appears to be in a recession." Barclays Capital analysts predicted the dollar would fall back below 100 yen by the end of the year because it will take time for the US authorities to resolve the credit crunch.
No comments:
Post a Comment