IST: Dollar remains firm in lower 90 yen in Tokyo on Japan's GDP data
TOKYO, Feb. 15, 2010 (Kyodo News International) -- The U.S. dollar held firm in the lower 90 yen range Monday in Tokyo as better-than-expected Japanese economic data prompted investors to sell the safe-haven yen.
At 5 p.m., the dollar fetched 90.14-16 yen compared with Friday's 5 p.m. quotes of 89.93-90.03 yen in New York and 90.04-07 yen in Tokyo.
It moved between 89.98 yen and 90.25 yen during the day, changing hands most frequently at 90.17 yen.
The euro traded at $1.3610-3611 and 122.68-72 yen against $1.3624-3634 and 122.65-75 yen in New York and $1.3636-3639 and 122.80-84 yen in Tokyo late Friday.
The yen weakened against the dollar as positive economic news about Japan tends to spur selling of the Japanese currency, which is often perceived as a safe bet, some dealers said.
According to the government data, Japan's gross domestic product grew an annualized real 4.6 percent in the October-December period for the third consecutive quarter of expansion, beating the average market projection of an annualized 3.5 percent expansion in a Kyodo News survey.
The data also showed that the GDP deflator, a key inflation gauge, fell at the steepest rate ever of 3.0 percent from a year earlier.
This also led the yen to lose ground against the dollar, dealers said.
''The decline of the GDP deflator tends to give rise to expectations for a further continuation of Japan's easy monetary policy,'' said Masafumi Yamamoto, chief foreign exchange strategist at Barclays Bank.
Due to persistent concern about Greece's fiscal plight, the euro was on the defensive against both the dollar and the yen.
Eurozone finance ministers and other officials are expected to address the issue of Greece on Monday and Tuesday.
''The eurozone countries will likely balk at extending financial aid to Greece,'' said Daisuke Uno, chief strategist of the Treasury Marketing Department at Sumitomo Mitsui Banking Corp. ''Euro selling should occur once that view is confirmed after the upcoming meetings in Europe.''
Trading in Tokyo was thin amid the absence of Chinese and some other Asian investors due to the Chinese New Year as well as U.S. market players because of the Presidents Day national holiday.
