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Dollar stays above 99 yen in Tokyo after upbeat Tankan.

TOKYO, July 1 Kyodo

The U.S. dollar held firm above 99 yen Monday morning in Tokyo, as the Bank of Japan's Tankan survey showed improved business sentiment in Japan, stirring market players' risk appetite.

At noon, the dollar was quoted at 99.29-30 yen compared with 99.10-20 yen in New York and 98.82-83 yen in Tokyo at 5 p.m. Friday.

The euro fetched $1.3023-3024 and 129.30-33 yen against $1.3005-3015 and 129.02-12 yen in New York and $1.3046-3047 and 128.92-96 yen in Tokyo late Friday.

The dollar edged up to the mid-99 yen range when the Tankan survey's headline index measuring sentiment among large manufacturers showed a second consecutive quarterly improvement.

The index returned to positive territory for the first time since September 2011, rising to plus 4 in June from minus 8 three months earlier.

But the impact of the survey was limited on the dollar-yen pair as that kind of improvement had been widely expected by market analysts after the BOJ's decision in early April to double the monetary base in two years set the tone for a weaker yen.

"The favorable Tankan results helped risk appetite grow temporarily," said Yuji Kameoka, chief foreign exchange strategist at Daiwa Securities Co. "But the results were largely within expectations, so it seems the dollar's gains are limited."

This week will see a series of major economic data releases, including U.S. manufacturing data from the Institute for Supply Management and a U.S. jobs report, both for June, due out Monday and Friday respectively.
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Publication:Japan Weekly Monitor
Geographic Code:9JAPA
Date:Jul 1, 2013
Words:263
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