ET: U.S. dollar rebounds on prospect of Japanese intervention
The U.S. dollar rebounded against the yen in Asia yesterday after Japan's finance minister toughened his rhetoric to say he would take "proper measures" to curb the yen's rise if necessary, dealers said.
The dollar, which briefly fell into the mid-83 yen range in New York on Tuesday to fetch a new 15-year low on weak home sales data, was changing hands at 84.35 yen in Tokyo afternoon trade.
The euro rose to 106.63 yen from 106.00 while easing to US$1.2642 from US$1.2670.
Japanese officials have been under pressure to show concrete plans to act against the strength of the yen, which threatens the country's exporters, amid growing frustration over perceived inaction.
Finance Minister Yoshihiko Noda cautioned the market Wednesday, telling reporters that the Japanese authorities "must take proper measures when necessary."
After meeting Prime Minister Naoto Kan, Noda made similar remarks in the afternoon, fueling views that Tokyo was unlikely to take immediate steps to stem the yen's rise, Nomura Securities senior trader Hiroshi Maeba said.
"His remarks were nothing new," Maeba told Dow Jones Newswires.
Noda did not mention specific options but the comment followed a report in the Nikkei economic daily that his ministry is ready to make a solo intervention if speculative trade boosts the Japanese currency by a few yen in a day.
Against Asian currencies the dollar was mixed, rising to 1,195.10 South Korean won from 1,191.60 on Tuesday and to NT$32.04 from NT$31.97.
But it fell to 45.38 Philippine pesos from 45.44, to 1.3593 Singapore dollars from 1.3616, and to 8,971.00 Indonesian rupiah from 8,987.00.
