The yen fell against the U.S. dollar and euro in Asian trade yesterday after Japanese Prime Minister Yukio Hatoyama resigned, denting investor confidence in the world's number two economy.
The dollar rose to 91.46 yen in Tokyo afternoon trade from 91.06 in New York late Tuesday. The euro was mixed, falling to US$1.2211 from US$1.2232 but gaining to 111.68 yen from 111.40.
Hatoyama resigned in the face of plunging popularity ratings after he reneged on a campaign promise to move a controversial U.S. base off the island of Okinawa and was hit by the fallout from a political fund scandal.
His successor will be announced on Friday.
But the damage to the yen is likely to be limited as investors had already priced in Hatoyama's resignation earlier this week amid media speculation, Tokyo Forex & Ueda Harlow currency manager Yuzo Sakai told Dow Jones Newswires.
Finance Minister Naoto Kan is seen as a likely successor to Hatoyama.
He has openly argued for a weaker yen, which helps Japan's exporters by making their products relatively cheaper.
The dollar was stronger against other Asian currencies, gaining to 9,235 Indonesian rupiah from 9,207 on Tuesday, to NT$32.30 from NT$32.14, to 1.4122 Singapore dollars from 1.4034, to 32.59 Thai baht from 32.53 and to 46.72 Philippine pesos from 46.44.
