SINGAPORE: The dollar fell against the yen in Asia Friday, extending losses seen in New York, as the unit retreated from a five-year high despite a broadly upbeat set of US economic data.
The greenback bought 104.35 yen in Singapore morning trade, compared with 104.69 yen in New York on Thursday and well down from the 105.41 yen mark touched earlier this week, which was the highest since October 2008.
The euro dipped to $1.3657, from $1.3665, and to 142.55 yen from 143.06 yen. Japanese markets are closed for a public holiday.
US economic reports Thursday included data showing the strongest US construction spending in four years as well as a fall in jobless claims. And while manufacturing activity slowed in December it still remained solid, raising hopes the economy will continue to pick up in 2014.
"With the slate of positive data and some risk aversion in markets, we found the dollar trading higher against risk currencies and falling against the yen," said Desmond Chua, market analyst at CMC Markets in Singapore.
"Industrial production, retail sales, nonfarm payrolls, construction - all have run sharply northward after an autumn of broad-based malaise," DBS Bank said in a commentary.
It said while the data released was "uniformly strong" and come on the heels of the decision by the US Federal Reserve in December to begin scaling back its bond-buying programme, investors are tempering expectations of a dramatic rise in the dollar this year.
"They are also mindful that the Fed taper expectations alone cannot underpin the (dollar) amidst a global recovery that is broadening geographically," the Singapore bank said.
"By and large, this explains why consensus forecasts have been more flattish and mixed, than bullish about the (dollar) this year."
Comments
Comments are closed for this article.