Yen firms against dollar and euro in Asian trade

Tuesday, 13 March 2012 00:44 - - {{hitsCtrl.values.hits}}

TOKYO (AFP): The yen firmed against the dollar and the euro in Asian trade Monday after better-than-expected data for Japanese machinery orders suggested a pick-up in the country’s moribund economy.

The dollar slipped to 82.32 yen in Tokyo afternoon trade, from 82.44 yen late Friday in New York, where a healthy US jobs report spurred the greenback higher against other major currencies.

The euro also fell to $1.3093 and 107.82 yen in Tokyo trade, compared with $1.3120 and 108.19 yen late Friday in New York.

Japan’s core machinery orders rose 3.4 percent in January from the previous month, according to official data released early Monday, hinting at stronger economic growth in the first quarter of this year.

But dealers said the dollar was still likely to break through the 83.00 yen mark this week, given recent positive US figures and speculation that the Bank of Japan will take new easing measures in a two-day meeting starting Monday.

“The possibility that the US Fed takes a fresh monetary easing measure is receding given recent comments by Fed officials and strong economic data, while there are mounting expectations that the Bank of Japan may take further monetary easing measures,” said Masafumi Yamamoto, chief forex strategist at Barclays Capital.

The Japanese central bank said last month it would pump $130 billion more into the country’s ailing economy to combat stubborn deflation.

Official figures earlier this month showed that Japan’s unemployment inched up, household spending fell more sharply than expected, and core consumer prices fell 0.1 percent in January from a year earlier, as the deflation that has plagued Japan for years persisted.

The dollar firmed against other Asian currencies. It rose to Sg$1.2608 in Tokyo afternoon trade from Sg$1.2528 on Friday, to 9,155.00 Indonesian rupiah from 9,130.00, and to 42.65 Philippine pesos from 42.55.

It also gained to 1,122.50 South Korean won from 1,115.50, to 30.62 Thai baht from 30.57, and to Tw$29.50 from Tw$29.47.