Dollar rises in upper 76 yen range as worries over U.S. economy ease.
The U.S. dollar advanced slightly in the upper 76 yen range Monday morning in Tokyo after worries eased on the weekend over the outlook for the world's biggest economy
At noon, the dollar fetched 76.81-84 yen against 76.67-77 yen in New York and 76.64-66 yen in Tokyo at 5 p.m. Friday.
The euro was quoted at $1.4314-4315 and 109.96-98 yen versus $1.4245-4255 and 109.27-37 yen in New York and $1.4201-4203 and 108.84-88 yen in Tokyo late Friday afternoon.
The U.S. currency drew buying in Tokyo after the Dow Jones Industrial Average climbed for the second day in New York on Friday due to stronger-than-expected U.S. retail data for July, dealers said.
''The Dow advanced for the second consecutive day for the first time in around a month and this helped abate excessive fears about the outlook for the U.S. economy, prompting the dollar to rise,'' said Masayuki Hoshina, chief economist at Okasan Securities Co.
Hoshina, however, added that it would be ''extremely difficult'' for the dollar to rise further after the U.S. Federal Reserve said last week that it would maintain its ultra-low rate policy at least through mid-2013 and as housing and jobs data remain weak.
The market reacted little to Japan's April-June gross domestic data released earlier in the day, which showed a smaller-than-expected contraction, Hoshina said.
The euro, meanwhile, moved narrowly both against the yen and the dollar as market players awaited the outcome of Tuesday's meeting between French President Nicolas Sarkozy and German Chancellor Angela Merkel, dealers said.
The leaders are expected to discuss the eurozone's economic governance at a time when worries are growing that the Greek debt crisis will spread to Italy and Spain, they said.
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|Publication:||Japan Weekly Monitor|
|Date:||Aug 15, 2011|
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