Yen Rises as Greek Debt Concerns Return

 
   By Tatsuo Ito 
 

        The dollar was lower against the yen in Asia on Thursday as renewed uncertainty over the course of Greek debt talks heightened caution among investors and moderately boosted demand for the safe haven yen.
        As of 0450 GMT, the greenback was at Y123.63, compared with Y123.85 late Wednesday in New York. The WSJ Dollar Index, a measure of the dollar against a basket of major currencies, was down 0.11% at 86.40.
        After optimism grew over a debt deal between Greece and its global lenders earlier this week, reports that they still remain far apart on pension cuts and other conditions turned investors risk-averse once again, pushing down share prices and boosting demand for bonds overnight.
        Eurozone finance ministers called off a key meeting after a little more than an hour on Wednesday.
        In Asia, traders cited a move among Japanese firms to bring home dividends and earnings from their overseas investments as another factor strengthening the yen.
        "The repatriation tends to come in June," said Yuji Saito, executive director of foreign exchange at Credit Agricole Corporate & Investment Bank.
        Mr. Saito said, meanwhile, that the U.S. Senate's approval of legislation enhancing President Barack Obama's scope for negotiating an ambitious Pacific trade deal is "basically a factor pushing the dollar up against the yen because it's a plus for Japanese stocks." That upward pressure on the greenback was being offset by the seasonal yen buying from Japanese firms, he said.
        Some analysts, however, were skeptical that the passage of the trade powers bill would spur a further rise in the dollar.
        Junya Tanase, chief forex strategist at JPMorgan in Tokyo, said while its passage marks a major step forward in efforts to finalize the Trans-Partnership Agreement, "we believe the U.S. administration is reluctant to see the dollar strengthening further as it is having a negative impact on the U.S economy and their manufacturers."
        Many traders say the market could be stuck in a range for a while until the Greek debt negotiations are out of the way.
        Osao Iizuka, head of FX trading at Sumitomo Mitsui Trust Bank, said the dollar could find some technical support at Y123.50.
        The euro was at $1.1207, compared with $1.1205, according to EBS.
        Write to Tatsuo Ito at tatsuo.ito@wsj.com
        (END) Dow Jones Newswires

        June 25, 2015 01:40 ET (05:40 GMT)

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