.jpg)
TOKYO: The dollar moved higher against the yen in Asian trading on Wednesday, adding to the previous day's rally, as dealers welcomed diplomatic efforts to solve the Syrian crisis without military action.
The greenback fetched 100.57 yen in Tokyo by midday, against 100.40 yen in New York on Tuesday and well up from 99.60 yen in Asia on Tuesday.
The euro bought $1.3265, compared with $1.3266 while it was also at 133.30 yen from 133.29 yen.
US President Barack Obama said late Tuesday in Washington he would give diplomacy a chance before launching an attack on Syria for using chemical weapons on its own people last month.
The Assad regime earlier in the day agreed to a proposal by Russia to "place the chemical weapons under international control and then have them destroyed".
Obama has asked Congress to delay a vote on carrying out a strike while diplomatic channels are explored, analysts said.
The has helped boost confidence and kept the dollar buoyant against the Japanese unit, which is considered a safer bet in times of uncertainty, dealers said.
"The worries on Syria have not completely gone away as disagreement remains on the exact terms of the resolution in the UN, but Russia's proposal has calmed things down for the time being," Credit Agricole said.
Upbeat Chinese data has also raised hopes over the health of the Asian economic giant while the euro won support as dealers said there was little chance the European Central Bank (ECB) would further loosen policy in the near future. Monetary easing tends to weigh on a currency.
"Despite recent ECB rhetoric to the contrary, we perceive there exists little scope for policy intervention any time soon," Credit Agricole said.
"Acknowledging these ECB policy constraints, investors are likely to keep European rate expectations elevated in coming months."
Comments
Comments are closed for this article.