Dollar lower against yen in midafternoon Tokyo trade
TOKYO (AFX-ASIA) - The dollar was lower against the yen in midafternoon Tokyo trading, pressured by continued profit taking, dealers said. Profit taking continued as investors saw the strong upside resistance earlier, they said.
"But, the dollar's upside resistance was confirmed to be strong at around 134.40 yen this morning, investor interest to test the upside faded," a credit bank dealer said.
Emerging caution over the possibility of joint intervention by Japan and the U.S. also discouraged investors from turning active buyers of the dollar, dealers said.
"Caution over joint intervention by Japan and the U.S. is growing
stronger by (Vice Finance Minister for international affairs Eisuke)
Sakakibara's visit to the U.S.," one city bank dealer said.
"Considering Southeast Asain currencies, some of which are falling
sharply today, I cannot say the possibility of the joint intervention is low."
"As long as there is the possibility of joint intervention, investors have to be more cautious over buying the dollar." However, investors remain reluctant to actively sell the dollar due to caution over the possible active selling of the yen which could be triggered
by ongoing sharp declines of Southeast Asian currencies, dealers said.
Against the mark, the dollar was lower on continued profit taking,
dealers said.
However, the dollar is unlikely to continue falling from current levels due to easing caution over the recent continued mark's declines against the dollar after Bundesbank chief economist Otmar Issing failed to comment directly on the recent declines of the mark against the dollar during a visit to New York overnight, dealers said.
AFN |
