Dollar rises against yen amid Japan political uncertainty

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GMT - 3 Hours Dollar rises against yen amid Japan political uncertainty

Post by εﺓз• » ιη∂αġι яσ¢χ « • on Thu Sep 15, 2011 1:55 pm

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TOKYO: The dollar rose against the yen in Asia on Thursday, rebounding from overnight falls amid political uncertainty in Japan, analysts said.

The dollar rose to 81.31 yen in Tokyo morning trade from 80.92 yen in New York late Wednesday.

The greenback fell below 81.00 yen to hit its lowest level in two weeks in New York as weak jobs and manufacturing data sparked concerns over US economic outlooks.

The dollar rebounded in Asia despite lower stock prices.

"The dollar turned up in an autonomous reaction to the overnight falls. It also gained support due to the shaky political situation in Japan," said Mizuho Corporate Bank market economist Daisuke Karakama.

"Lower stock prices usually spawn risk aversion and lead to yen buying. Given the earthquake, nuclear crisis and now this political shake-up, however, the currency of such a country can hardly attract buying," he said.

Japanese Prime Minister Naoto, already struggling with recovery efforts after the earthquake and tsunami in March that sparked a nuclear crisis, faces a no-confidence vote on Thursday.

A sizeable revolt is expected from his own party, leaving the result balanced on a knife-edge. If Kan lost the vote he would have to resign or call fresh elections.

The euro was mostly flat against the dollar in Tokyo, buying $1.4353 against $1.4331 in New York on Wednesday when the single currency took a beating as news of Moody's downgrade of Greek debt hit the market.

Moody's slashing of its credit rating on Greece to Caa1 from B1 on Wednesday hit a market that had grown more confident in the euro early in the day.

But there was no fresh news Thursday related to the euro-zone debt crisis.

"Trading has been choppy recently, with activity dominated by speculative moves aimed at inducing stop-loss orders on both sides," a senior trader at a Japanese trust bank told Dow Jones Newswires. (AFP)
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