The euro fell and the dollar against the yen in Asia Tuesday, with the poor performance of Asian stocks to pay the regional players in the short term to buy the yen a safe haven, while Japanese exporters bought the unit for a settlement at the end of the month.
A higher yen and also came in light of the outstanding views that the Bank of Japan monetary easing steps Monday were not aggressive enough to stop the strength of the yen in recent times. The Board of Directors of the Central Bank of the policy at an emergency meeting that it would provide another Y10 trillion in funds for six months at a fixed price.
"Players have become averse to risk because of poor stock performance," fleeing from the yen, considered the least risky currencies, said Akihiro Tanaka, senior trader at Resona Bank. Japanese exporters who were unable to sell the dollar in recent days because of movements would also pay the Bank of Japan in the devaluation of the dollar and the euro against the yen, he added.
Other traders said the Bank of Japan ease were not impressive enough to reverse the yen bullish sentiment.
"We are disappointed by the players move the Bank of Japan. Some say the timing was too late," said Yuichiro Harada, a senior trader at Mizuho Corporate Bank.
He also defended the Japanese Finance Minister Yoshihiko Noda Tuesday that Japan's central bank of this criticism, suggesting he may refrain from demanding more monetary easing for some time. He also expressed dismay at the high hard currency, hinting again at the possibility of currency intervention in the market, if necessary.
As of 0450 GMT, the U.S. unit stood at Y84.24 from its level in New York Y84.55. The euro traded at Y106.63 compared with Y107.09. Lower Falls in Asian stock markets tendency of players to take risks, and urge to buy the Japanese yen. The Nikkei Stock Average down 2.8% in Tokyo this afternoon.
Traders said the market focus turns to how the United States and indicators in the euro area and the position of Government economic impact on the stock.
Investors will be looking closely at a press conference after a meeting of policy-making in the European Central Bank on Thursday, and the United States non-farm payrolls data in August due to traders on Friday, he said. Traders said the yen may be enhanced if disappointed by the result, in addition to the views that the pace of global economic recovery could lead to delay.
Traders said the dollar may fall to its lowest level in 15 years of Y83.58 mark on August 24. And can be up to Y105.00 euro, its lowest level since July 2001.
Economists polled by Dow Jones Newswires expect non-farm payrolls to post a loss of 110,000 jobs in August of the fall of 131 000 in July. The unemployment rate may come in August at 9.6%, compared with 9.5% in the previous month.
Other major events including the U.S. employment report from Automatic Data Processing due at 0815 GMT, and the Institute for Supply Management Report industry for work due at 1000 GMT, both in August.
The euro fell slightly to $ 1.2656, compared with $ 1.2663 overnight. The ICE Dollar Index, which tracks the dollar's value against a basket of trade-weighted currencies, at 83.132 from 83.160.
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