Tuesday June 30, 2009
TOKYO: The yen was under pressure in Asian trade on Tuesday as investors bought higher yielding assets amid hopes of an improvement in the global economy, dealers said.
The dollar firmed to 96.11 yen in Tokyo morning trade from 96.04 in New York late Monday. The euro climbed to 1.4114 dollars from 1.4088 and to 135.58 yen from 135.28.
The "safe-haven" yen was sold on expectations that Japanese investors would send more money overseas as risk aversion eases, NAB Capital analyst John Kyriakopoulos wrote in a note.
Japanese investors continue to buy foreign bonds to take advantage of higher yields overseas and as "growth prospects at home remain poor," he added.
The VIX volatility index, known by many market players as the "investor fear gauge", fell Monday to its lowest point since just before Wall Street giant Lehman Brothers collapsed last September.
The Australian and New Zealand dollars -- whose fortunes are closely linked to commodities prices -- were also higher against the yen.
Currency traders waited for fresh cues from a string of economic figures in the United States, including housing and consumer data out later in the day, followed by employment and manufacturing figures later this week.
US markets will be closed Friday for the Independence Day holiday.
In Japan, a key survey of business confidence, due to be released on Wednesday, is expected to show an improvement in sentiment among the country's major manufacturers from a record low the previous quarter.
Investors will also scrutinise China's purchasing managers' index due out on Wednesday for clues on growth prospects for the Asian giant, dealers said.
The European Central Bank is scheduled to meet Thursday with its policymakers focused on how to support bank lending. The ECB is widely expected to hold its key lending rate steady at an all-time low of 1.0 percent.
(AFP)
TOKYO: The yen was under pressure in Asian trade on Tuesday as investors bought higher yielding assets amid hopes of an improvement in the global economy, dealers said.
The dollar firmed to 96.11 yen in Tokyo morning trade from 96.04 in New York late Monday. The euro climbed to 1.4114 dollars from 1.4088 and to 135.58 yen from 135.28.
The "safe-haven" yen was sold on expectations that Japanese investors would send more money overseas as risk aversion eases, NAB Capital analyst John Kyriakopoulos wrote in a note.
Japanese investors continue to buy foreign bonds to take advantage of higher yields overseas and as "growth prospects at home remain poor," he added.
The VIX volatility index, known by many market players as the "investor fear gauge", fell Monday to its lowest point since just before Wall Street giant Lehman Brothers collapsed last September.
The Australian and New Zealand dollars -- whose fortunes are closely linked to commodities prices -- were also higher against the yen.
Currency traders waited for fresh cues from a string of economic figures in the United States, including housing and consumer data out later in the day, followed by employment and manufacturing figures later this week.
US markets will be closed Friday for the Independence Day holiday.
In Japan, a key survey of business confidence, due to be released on Wednesday, is expected to show an improvement in sentiment among the country's major manufacturers from a record low the previous quarter.
Investors will also scrutinise China's purchasing managers' index due out on Wednesday for clues on growth prospects for the Asian giant, dealers said.
The European Central Bank is scheduled to meet Thursday with its policymakers focused on how to support bank lending. The ECB is widely expected to hold its key lending rate steady at an all-time low of 1.0 percent.
(AFP)
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