GB: Yen rises on weak US manufacturing data, Australia rate cut
Traders moved into the yen on Tuesday as weak US manufacturing data hit sentiment, while the Australian dollar dropped to its lowest in more than five years after the country's central bank cut interest rates to a record low.
In Tokyo, the dollar weakened to 116.96 yen from 117.64 yen in New York, while the euro was also lower at $1.1329 and 132.57 yen from $1.1343 and 133.43 yen in US trade.
US manufacturing growth slowed for the third straight month in January, the Institute for Supply Management said Monday, hampered by lower commodity prices and a slowdown at West Coast ports.
The data came after a disappointing economic growth report last week.
"Some of the strong momentum in the US has probably slowed," said Robert Sinche, a strategist at US-based Amherst Pierpont Securities.
"It's difficult for the dollar to generate much more upside for the first half of this year."
The yen picked up after demand at an auction of 10-year Japanese government bonds slumped, triggering a sharp spike in yields, traders said.
Currency traders also tend to buy the yen in times of uncertainty or turmoil.
In other trading, Australia's dollar plunged as the central bank unexpectedly cut its official cash rate to a new low of 2.25 percent.
The Aussie was hovering around its lowest level since May 2009, buying 76.59 US cents against 78 cents before the announcement.
Euro trading was focused on the new Greek government's attempt to win support for a renegotiation of its massive bailout.
Greece's prime minister and finance minister are touring Europe this week to seek support for their plans to strike a revised deal with creditors, and repair damage after relations with European partners suffered a rocky first week.
"There's room for agreement, but it could be a bit messy before we get there," said Jonathan Webb, head of foreign-exchange strategy at a unit of Jefferies International.
The dollar weakened against other Asia-Pacific currencies.
It slipped to 61.71 Indian rupees from 61.86 rupees on Monday, to 12,602.00 Indonesian rupiah from 12,688.10 rupiah, to 1,097.50 South Korean won from 1,103.24 won, and to Tw$31.53 from Tw$31.60.
The greenback also fell to 44.09 Philippine pesos from 44.17 pesos, to Sg$1.3521 from Sg$1.3538, and to 32.53 Thai baht from 32.57 baht.
The Chinese yuan fetched 18.70 yen against 18.79 yen.
