TOKYO -- The yen drifted lower in Asian trade yesterday as former foreign minister Naoto Kan was named as Japan's new prime minister, dealers said.
Markets were also focusing on a crucial monthly U.S. jobs report later in the day, anticipating a drop in the unemployment rate that could signal the pace of recovery in the world's biggest economy.
The dollar and the euro also gained on buying from Japanese importers for settlement purposes in quiet trade, dealers said.
The dollar edged up to 92.73 yen in Tokyo afternoon trade from 92.69 in New York late Thursday. The euro rose to 1.2176 dollars from 1.2158 and to 112.88 yen from 112.74.
The dollar gained against other Asian currencies, rising to 9,187 Indonesian rupiah from 9,185 on Thursday, to 32.15 Taiwan dollars from 32.10, to 1.4026 Singapore dollars from 1.4017, and to 46.42 Philippine pesos from 46.40. It was unchanged at 32.57 Thai baht.
The appointment of Kan, who has advocated for a weaker yen, as the new leader has not resulted in sell off of the Japanese currency as weaker regional share markets sustained demand for the safe-haven currency.
“Yes, as finance minister Kan did refer to Japanese firms' preference for the dollar-yen up at around 95 yen and seemed himself to have a strong preference for a weaker yen,” Mitsuru Sahara, senior dealer at Bank of Tokyo-Mitsubishi UFJ, told Dow Jones Newswires.
