WSJ:WORLD FOREX: Dollar Hits Near 1-Week High Vs Yen As Stocks Gain
--Dollar up vs yen as Japanese banks, overseas funds buy
--Australian retail sales report pushes Aussie up
--Dealers warn yen may resume strengthening soon, keeping intervention risk alive
--Japan METI survey highlights pressure on government to tame strong yen
By Andrew Monahan
Of DOW JONES NEWSWIRES
TOKYO -(Dow Jones)- Japanese banks and overseas funds pushed the dollar up to a near one-week high against the yen in Asia Thursday, as strong regional share prices dented demand for the safe-haven Japanese currency.
Encouraging Australian economic data sent the Australian dollar up against its rivals, and helped the risk-sensitive euro. Retail sales in Australia rose a higher-than-expected 0.5% to a seasonally adjusted A$20.65 billion in July, from A$20.54 billion in June.
Japan's benchmark Nikkei Stock Average was up 1.20% in mid-afternoon trade, another factor in the retreat in safe-haven currencies like the yen. The dollar rose to Y77.25 Thursday, its highest since Aug. 26.
Still, the yen's slight retreat Thursday did little to temper speculation it could come roaring back. Short-term investors could pile heavily into the yen if the U.S. non-farm payrolls report for August due Friday increases concern the world's biggest economy is falling back into recession, dealers said.
Any sharp fall in the dollar below Y76.00 would put market participants back on alert for Japanese intervention, they said.
"If the jobs data are bad and we get that kind of jump in the yen, the market could really be on edge Monday morning from the go in Asia," said Mitsuru Sahara, a senior foreign exchange dealer at Bank of Tokyo-Mitsubishi UFJ.
In the latest sign of discomfort in Japan over the yen's strength, which hurts the key export sector, 63% of large manufacturers surveyed by the Ministry of Economy, Trade and Industry said they want the government to conduct sustained intervention. The strong currency makes their products less competitive overseas and eats into profits repatriated to Japan.
At 0450 GMT, the dollar was at Y76.84 from Y76.66 late Wednesday in New York. The euro was at Y110.42 from Y110.22. Against the greenback, the common currency was at $1.4369 from $1.4370. The ICE Dollar Index, which measures the U.S. unit against a basket of other currencies, was at 74.183 compared with 74.137.
Interbank Foreign Exchange Rates At 00:50 EDT / 0450 GMT
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