Yen Higher Against Rivals As Stocks Fall

 
   By Hiroyuki Kachi 
 

        The yen was moderately stronger against the dollar and other rival currencies during Asian trading hours Wednesday, as stock market weakness following overnight falls on Wall Street pushed more investors into the perceived safety of the Japanese currency.
        Around 0450 GMT, the dollar weakened to Y123.71, compared with Y123.89 late Tuesday in New York. The euro fell to Y135.31 from Y135.56 overnight.
        Having reached a six-week high of Y124.48 Tuesday during the Asia session, the greenback still remains vulnerable to profit taking as stocks slump, traders said. The Nikkei Stock Average was down 1.0% in the afternoon session.
        "We are seeing some adjustment of positions but now isn't the right time to go ahead with full-fledged dollar selling," given the deep-rooted expectations for an early U.S. rate increase and a Federal Open Market Committee meeting next week, said IG Securities market analyst Junichi Ishikawa.
        "Investors still can't rule out the possibility of a rate decision in September, so that makes it hard to assume a weaker dollar and a stronger yen," in the near future unless there are steep falls in the stock market, he said.
        The Australian dollar remained volatile during the Asia session, with the latest inflation figures and comments by Australian central bank Gov. Glenn Stevens fueling fluctuations.
        Australian consumer prices rose 1.5% from a year earlier undershooting a street consensus of 1.7%.
        Mr. Stevens said cutting interest rates further remained an option, but added that to keep on lowering would at some point invite danger to the economy. Australia's central bank is scheduled to meet in early August.
        Following the remarks, the Australian dollar fell to lows of $0.7373 and Y91.19, respectively from $0.7418 and Y91.92 before recovering to $0.7422 and Y91.80.
        In other currency trade, the dollar was higher against the euro. The common currency fell to $1.0942 midday, compared with $1.0935 overnight.
        The WSJ Dollar Index, a measure of the dollar against a basket of major currencies, was down 0.03% at 88.15.
        Write to Hiroyuki Kachi at Hiroyuki.Kachi@wsj.com
        (END) Dow Jones Newswires

        July 22, 2015 02:02 ET (06:02 GMT)

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