Dollar higher against yen as risk appetite grows

September 3, 2013
 Dollar higher against yen as risk appetite grows/ AFP
Dollar higher against yen as risk appetite grows/ AFP

, TOKYO, September 3- The dollar rose against the safe-haven yen in Asia on Tuesday as risk taking sentiment increased on fading concern of an imminent US military strike on Syria and improved economic data.

The dollar rose to 99.44 yen in afternoon Asian trade from 99.34 yen in London late Monday and the 98-yen range in Tokyo Monday.

“The market hasn’t completely turned to risk on mode, but the pair (dollar yen) is likely to keep the momentum from yesterday,” said Osao Iizuka, head of forex trading at Sumitomo Mitsui Trust Bank.

The dollar “looks strong” against the yen but its topside could be capped at 100.00 before US jobs data Friday and more Japanese exporter selling, he told Dow Jones Newswires.

The euro changed hands at $1.3187, against $1.3193 in European trade, while the single currency stood at 131.13 yen against 131.07 yen.

US financial markets were closed Monday for the Labor Day federal holiday.

National Australia Bank said the improved sentiment following upbeat Chinese manufacturing numbers “spilled over into European markets overnight”.

Also, a survey Monday showed eurozone manufacturing activity hit a 26 month high in August, confirming other recent data that shows the bloc coming out of a deep recession.

The potential for retaliation against Syria for its alleged use of chemical weapons on citizens was “on the back burner for this week,” the Australian bank added in a note.

US President Barack Obama said he will seek support for military action in Syria from Congress, which will return from recess on Monday next week.

The dollar firmed to 66.77 Indian rupees from 65.78 Monday afternoon, to 11,035 Indonesian rupiah from 10,943 and to 44.30 Philippine pesos from 44.19 pesos.

The dollar edged down to 1,095 South Korean won from 1,101 won, to Sg$1.2722 from Sg$1.2737, to Tw$29.75 from Tw$29.77 and to 32.01 Thai baht from 32.11 baht.

The Australian dollar rose to 90.36 US cents from 89.68 cents after its central bank left its interest rate unchanged. The Chinese yuan rose to 16.22 yen from 16.10 yen.

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