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Dollar moves away from two-month low against yen in Asian trade

It was a mixed picture for Asian shares at the start of a week shortened by holidays, amid quiet trade as Japanese shares lead the region’s gains.

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The US unit recovered to 120.35 yen in Tokyo on Monday morning from a two-month low of 120.19 yen on Friday in Tokyo.


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Japan’s Nikkei rose 0.2 per cent, with soft domestic production and retail data offset by a rebound in crude oil prices.


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“The dollar lacks clear direction”, given many other overseas markets still being closed, said a Japanese brokerage house analyst. The dollar ticked down to 120.86 yen from 120.87 yen Wednesday in NY, and from 121.26 yen on Tuesday in Tokyo.

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That compares with 120.33 yen in the late afternoon on Friday in Tokyo. “The Nikkei has been on track for a lacklustre finish to the year after the results of the BOJ meeting failed to impress,”said Martin King, co-managing director of Tyton Capital Advisors”.

“The fact that markets aren’t pricing in the next interest rate hike in the USA is the biggest factor” for the dollar’s weakness, Wako said.

The Australian dollar was down 0.1 percent at 0.7274 while the kiwi was up 15 points at 0.6843 as the U.S. dollar weakened in post-holiday trade. The JPX-Nikkei Index 400 shed 0.4 percent to 13,692.65.

In other trading, the Philippine peso weakened to 0.24 percent on the dollar and the Malaysian ringgit slipped 0.02 percent, while the Indian rupee rose 0.11 percent and the Taiwan dollar gained 0.32 percent.

Tokyo was dragged down by a stronger yen – bad news for exporters’ profitability – with the dollar slipping to 120.11 yen against 120.28 yen on Thursday in NY.

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The 225-issue Nikkei Stock Average added 22.49 points, or 0.12 percent, from Thursday to end the morning at 18,812.18, Xinhua reported. Unitika is rising nearly 4 percent and IHI Corp.is gaining more than 3 percent. The Hong Kong market is closed on Friday due to the Christmas holiday.

Nikkei edges up as Wall St rally, recovering crude help sentiment