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MW : Dlr Up Vs Yen On Importer Buying; May Fall Again
 
The dollar edged higher against the yen in Asia Tuesday, as Japanese importers bought the U.S. unit for a regular settlement, but dealers said the greenback will likely resume its downward trend again soon.

Remarks by Japan's outgoing finance minister Kaoru Yosano on the undesirability of rapid foreign-exchange movements also helped to support the dollar amid a dearth of trading cues, dealers said.

"With (the dollar's) support at the Y90-level, players used Yosano's comments as a cue to buy back," said Shinichi Hayashi, a senior dealer at Shinkin Central Bank.

As of 0450 GMT, the dollar stood at Y91.06, compared with Y91.00 in New York late Monday.

But dealers said the greenback remains in a downward trend due to lingering uncertainty over the strength of the U.S. economy, adding that upcoming U.S. data will be key to determining the dollar's next move.

In Tokyo, dealers said attention is focused on the incoming government of the Democratic Party of Japan, which is expected to favor a stronger yen.

Hirohisa Fujii, a leading candidate to become finance minister, told Dow Jones Newswires in an interview Monday that "in principle, it's not right" for the government to intervene in the currency market to benefit Japanese exporters.

The Dollar Index, a gauge of the currency's value against six major units including the euro, rose slightly to 76.68 from 76.65 late Monday.

Elsewhere, the euro gained versus the yen, helped by demand from Japanese importers for a regular settlement, dealers said.

The euro picked up to Y133.20, compared with Y132.98 in New York overnight. Against the dollar, the single unit rose slightly to $1.4623 from $1.4612.
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