WSJ:WORLD FOREX: Euro Edges Down As Risk Taking Remains Restrained
Of DOW JONES NEWSWIRES
TOKYO -(Dow Jones)- The euro edged down against the dollar and yen in Asia Wednesday as Japanese share prices fell and U.S. lawmakers fed concern over the world's biggest economy by rejecting President Obama's job plan, overshadowing gains in other Asian share markets and recent guarded optimism over Europe's debt crisis.
The risk-sensitive common currency moved lower in early Asian trading as short-term speculators took their cues from regular settlement orders by Japanese firms to take profits on recent rises in the single currency. Tokyo traders said Japanese life insurance firms and auto makers were seen selling the euro in a thinly traded market.
That prompted non-Japanese speculators to sell the euro and other non-Japanese Asian currencies against the dollar to take profits on the euro's rallies so far in October, said Sue Trinh, senior currency strategist at RBC Capital Markets.
Weak Japanese share prices and U.S. stock futures, as well as the rejection of Obama's jobs plan by the U.S. Senate, helped spur the euro selling, Trinh said.
The euro fell as low as Y104.20 in early Asian trading from Y104.52 in New York Tuesday. As of 0450 GMT, it was at Y104.46.
Against the dollar, the single currency was at $1.3618, from $1.3640 in New York Tuesday. The ICE Dollar Index, which measures the greenback against a basket of currencies, was at 77.764 from 77.669.
"The markets are attuned to headline risk and any uncertainty on global growth," Trinh said.
Those uncertainties also hurt Asian currencies such as the Korean won and Malaysian ringgit, said Yuzo Sakai, a senior dealer at brokerage Tokyo Forex & Ueda Harlow.
The Australian dollar--a favorite among Japanese retail investors when expectations for global growth are high--was also down against the dollar and yen on those uncertainties, Sakai said.
Daiwa SB Investments senior dealer Kenichiro Ikezawa said the euro should find support against the dollar at $1.3550, as signs of progress have been made in tackling the euro-zone debt crisis after Greece's international creditors on Tuesday cleared the way for Athens to receive the next slice of aid needed to stave off a default.
"Investor concerns toward the risk of Greek default have eased greatly since September," Ikezawa said.
"It's very unlikely that we'll see the euro fall sharply again in the immediate future as investor sentiment has recovered," he said.
The dollar was at Y76.70 at 040 GMT, from Y76.65 in New York Tuesday.
Interbank Foreign Exchange Rates At 00:50 EDT / 0450 GMT
Latest Previous %Chg Daily Daily %Chg
2150 GMT High Low 12/31
Dollar Rates
