TOKYO: The dollar edged up against the yen on Monday as investors bought back the US currency after it hit a two-month low against the Japanese unit last week.
Demand for the safe haven Japanese currency grew recently on a decline in oil prices and concerns over emerging economies in the wake of a US rate hike earlier this month.
The yen is often seen as a secure investment target in times of volatility and uncertainty.
But dollar-buying sentiment revived in early Asian trade after the greenback's decline approached 120 yen, dealers said.
The US unit recovered to 120.35 yen in Tokyo on Monday morning from a two-month low of 120.19 yen on Friday in Tokyo.
Financial markets were closed on Friday in the US and many European countries.
The euro edged up to $1.0971 from $1.0965. The single currency also strengthened to 132.06 yen from 131.73 yen in US trade.
The currency market largely ignored a 1.0 percent decline in Japan's factory output in November announced by the government Monday morning, dealers said.
Among other currencies, South Korea's won strengthened to a three-week high on speculation exporters are selling dollars to convert overseas earnings as the end of the year approaches.
The currency climbed 0.39 percent to $1.166, the strongest since early December.
"Exporters are selling the greenback to repatriate earnings as both the year-end and month-end approach," Kim Dae-Hun, a currency trader at Busan Bank Co in Seoul, told Bloomberg News.
Against other Asian currencies, the dollar was mixed.
The Philippine peso fell 0.21 percent and the Malaysian ringgit lost 0.16 percent, while the Indian rupee rose 0.18 percent and the Taiwan dollar gained 0.23 percent.
Higher-yielding -- and riskier -- emerging units have been hit hard this year on fears of a flight of capital to the US as dealers look for better, safer investments boosted by the Federal Reserve interest rate raise.
Comments
Comments are closed for this article.