Yen gains some ground after previous day’s selling

TOKYO - The yen edged up against the dollar and the euro on Friday, paring losses made the previous day when improved investor confidence on upbeat U.S. corporate results and housing market data helped take it lower.

By (Reuters)

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Published: Fri 24 Jul 2009, 8:21 AM

Last updated: Thu 2 Apr 2015, 8:30 AM

The yen hit its lowest in more than two weeks against the dollar on Thursday and a three-week low against the euro as the Dow industrials average topped the key 9,000 mark for the first time since January and as traders in Asia sold yen in anticipation of outflows from Japanese investors.

After the U.S. market closed, however, Microsoft Corp, Inc and American Express posted disappointing quarterly results and investors moved in to take profits on currencies which had gained sharply against the yen.

Traders said market sentiment was still positive, although some currencies are close to testing highs set in June, making investors wary of pressing ahead too aggressively.

“The market generally opts to pick up the positive side of economic factors,” said Akira Hoshino, foreign exchange trading department chief manager at Bank of Tokyo-Mitsubishi UFJ.

“As stocks have been upbeat, market sentiment in favour of risk assets will likely stay next week, supporting currencies such as the euro,” he said.

Tokyo’s Nikkei share average rose 1.3 percent but U.S. stocks futures were lower in Asia.

The dollar softened 0.1 percent to 94.82 yen after touching 95.30 yen on trading platform EBS on Thursday, its highest in more two weeks.

The euro was steady at $1.4145 after hitting seven-week high of $1.4292 on EBS the previous day.

Against the yen, the euro slipped 0.2 percent to 134.05 yen.

Commodity-linked currencies held steady with the Australian dollar at $0.8138 and the New Zealand dollar at $0.6547.

Thursday’s data showed U.S. existing home sales notched up their third monthly rise in June and prices hit the highest level since October, fuelling hopes that the housing sector is finally on the mend and will help power a broader economic recovery.

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