Dollar firms against yen

TOKYO: The dollar firmed against the yen in Asia on Tuesday, helped by purchases from Japanese importers, following its overnight fall on concerns over the course of the US economy, dealers said.

The greenback rose to 80.13 yen in Tokyo morning trade from 80.07 yen in New York on Monday. The euro traded at $1.4585, up from $1.4572. The European single currency also gained to 116.86 yen from 116.75 yen.

The dollar fell below 80 yen on Monday as worries over a US economic slowdown lingered in the wake of weak jobs report and other economic indicators released last week, dealers said.

Dismal prospects for the world's largest economy sent global stock markets lower.

"The dollar's overnight fall against the yen came as sluggish stock markets prompted investors to shun risks and pick up the Japanese currency," said Dai Sato, dealer at Mizuho Corporate Bank.

"But the dollar's downside has been supported by purchases from Japanese importers and investors," Sato said.

The euro remained under pressure after falling Monday amid worries over the fragility of Greece's newest deal with its bailout partners.

The EU, International Monetary Fund and European Central Bank said Friday they had agreed to extend the next tranche of funds under Greece's debt rescue accord package, most likely in July.

But euro selling accelerated after Jean-Claude Juncker, who heads the eurozone finance ministers, reportedly said that the common unit was overvalued relative to other major currencies.

"The euro is seen to remain under position adjustments towards the ECB's policy meeting this week, where the market expects a signal for a rate hike in July," Sato said.

The European Central Bank is scheduled to hold a policy meeting on Thursday and the market is closely watching remarks from its president Jean-Claude Trichet.

Copyright AFP (Agence France-Presse), 2011