IST: Dollar dips to lower 83 yen on position adjustment before holidays
TOKYO, Nov. 22, 2010 (Kyodo News International) -- The U.S. dollar edged down to the lower 83 yen level Monday in Tokyo as market players adjusted their positions ahead of holidays in Japan and the United States.
At 5 p.m., the dollar traded at 83.41-43 yen against 83.49-59 yen in New York and 83.30-31 yen in Tokyo at 5 p.m. Friday.
It moved between 83.34 yen and 83.58 yen during the day, changing hands most frequently at 83.45 yen.
The euro changed hands at $1.3731-3733 and 114.53-57 yen versus $1.3670-3680 and 114.07-17 yen in New York and $1.3693-3695 and 114.06-10 yen in Tokyo late Friday.
With no major market-moving incentives, market players sold the U.S. currency against the yen in order to adjust their positions before a Japanese holiday on Tuesday and the U.S. Thanksgiving holiday on Thursday, dealers said.
''Ahead of key market-moving news due out later in the week and holidays Tuesday and Thursday, the dollar came under selling pressure on adjustments after its recent rise against the yen,'' said Hideki Hayashi, global economist at Mizuho Securities Co.
''Also, Japanese exporters and individual investors sold the dollar to lock in profits after seeing the dollar rising to the mid-83 yen level'' on Friday in New York, he added.
Hayashi said the market will be keeping close tabs on key upcoming figures including revised U.S. gross domestic product data as well as the minutes of the U.S. Federal Open Market Committee's meeting on Nov. 2 and 3, both due for release on Tuesday.
At the FOMC meeting, the U.S. Federal Reserve decided to purchase an additional $600 billion of longer-term Treasury securities by the end of the second quarter of 2011 as an additional monetary easing step.
The euro strengthened against the dollar and yen throughout the day in Tokyo on expectations that financial assistance by the European Union and the International Monetary Fund will help to settle the crisis in debt-ravaged Ireland, dealers said.
Ireland on Sunday requested emergency financial assistance from the European Union and the IMF, abandoning its attempt to weather a banking and budget crisis on its own.
