Dollar rises against the yen

TOKYO: The dollar climbed against the yen in Asia on Thursday after positive US manufacturing data eased concerns about the health of the world's largest economy.

The greenback gained to 76.95 yen in Tokyo trade from 76.62 yen in New York late Wednesday.

The euro fell to $1.4370 from $1.4374. The European common unit fetched 110.58 yen, up from 110.22 yen.

Better-than-expected data on manufacturing in the US industrial heartland helped improve investor sentiment for the dollar, giving a lift to Wall Street stocks, dealers said.

Improved risk appetite was negative for the safe-haven yen, as Tokyo stocks also posted gains.

The Institute of Supply Management-Chicago reported Wednesday that its purchasing managers' index came in at 56.5 in August, above analysts' forecasts. Any number greater than 50 indicates expansion.

Meanwhile, payrolls firm ADP said the US private sector created 91,000 jobs in August, which fell short of expectations, ahead of the release Friday of a crucial government jobs report.

"As the dollar had fallen on pessimism over the US economy, the market reacted positively to the better-than-expected manufacturing data while the impact from the weak ADP data proved limited," said Sumino Kamei, senior analyst at the Bank of Tokyo-Mitsubishi UFJ.

"The market is now waiting to see" upcoming key US data, also including the ISM manufacturing index later in the global day, Kamei said.

The euro was weaker against the dollar amid lingering concern over eurozone sovereign debt, dealers said.

"There is no reason to actively buy the euro for now, as the region's economy has been showing signs of weakness and expectation for the European Central Bank's near-term rate hike has faded, on top of the downward pressure from the lingering sovereign debt problem," Kamei said.

Copyright AFP (Agence France-Presse), 2011