Dollar firm around 108 yen on eased concern about global economy
The U.S. dollar stayed relatively firm around 108 yen Friday morning in Tokyo on eased worries about the global economy, but caution over another Ebola infection in the United States capped the currency’s further gain.
At noon, the dollar fetched 108.01-02 yen compared with 108.23-33 yen in New York and 107.25-26 yen in Tokyo at 5 p.m. Thursday.
The euro was quoted at $1.2652-2653 and 136.65-72 yen against $1.2642-2652 and 136.84-94 yen in New York and $1.2640-2642 and 135.57-61 yen in Tokyo late Thursday afternoon.
After hitting a two-week high of 108.36 yen in New York overnight, the dollar hovered around the 108 yen line in Tokyo as the eurozone’s stronger-than-expected manufacturing index in October helped improve market sentiment, dealers said.
“Market players had generally been cautious” after the International Monetary Fund and the Federal Reserve warned about a slowdown in the global economy, said Kengo Suzuki, chief foreign exchange strategist at Mizuho Securities Co.
“But a significant review (in the global economic outlook) that could lead to a market panic is unlikely, although there should be some downward revisions,” Suzuki added.
Yen selling was also prompted by speculation about further monetary easing by the Bank of Japan following a news report that the BOJ sees a bigger possibility of the country’s inflation falling below 1 percent, excluding the impact of the consumption tax hike, dealers said.
The dollar, meanwhile, was pressured by news that a doctor in New York tested positive for the Ebola virus Thursday after returning home from treating Ebola patients in West Africa, while the first Ebola infection was confirmed in Mali, dealers said.
Suzuki said the spread of Ebola remains a key source of concern. But he also pointed out that fears of epidemics such as avian flu and SARS tend to appear once every five to 10 years and they eventually fade out in about six months.
“The likely main scenario this time is that such concerns will recede from late this year to early next year,” he said.
Source: asia.nikkei-Dollar firm around 108 yen on eased concern about global economy
