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Dollar falls to 15.5-yr-low vs. yen after Singapore tightening.

TOKYO, Oct. 14 Kyodo

The U.S. dollar fell to a fresh 15-and-a-half-year low against the yen in the lower 81 yen level Thursday morning in Tokyo after Singapore decided to tighten its monetary policy.

At noon, the dollar fetched 81.30-31 yen versus 81.75-85 yen in New York and 81.88-91 yen in Tokyo at 5 p.m. Wednesday.

The euro traded at $1.4079-4083 and 114.46-53 yen against

$1.3957-3967 and 114.14-24 yen in New York and $1.3993-3996 and 114.60-64 yen in Tokyo late Wednesday.

Following boxed trading in the upper 81 yen range in New York, the dollar fell below the 81.37 yen marked Monday in Sydney after Singapore's monetary authorities indicated a tightening by widening the trading band of the Singapore dollar.

The move prompted investors to buy the Singapore dollar and sell the U.S. currency, which in turn sent the yen higher against the U.S. dollar, dealers said.

This added to the continued weakness of the dollar, which had already faced selling pressure on expectations that the U.S. Federal Reserve will conduct further monetary easing soon.

But the U.S. currency found some support on investors' speculation that the Japanese government may again step into the currency market to stem the yen's rise, some dealers said.

Yuji Kameoka, chief foreign exchange strategist at the Daiwa Institute of Research, also noted that the speculation about the monetary easing by the Fed is not increasing at the moment to send the dollar down further.

The euro rose above the key $1.40 line amid growing dollar-selling pressure as European authorities have not made remarks that indicate they are seriously concerned about the euro's recent levels, dealers said.
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Publication:Japan Weekly Monitor
Geographic Code:9SING
Date:Oct 18, 2010
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