Yen firm against Euro, Dollar in Asia

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Yen firm against Euro, Dollar in Asia

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Overnight, European and US stocks sank on worries about the slowing global economy.

06 March,2012 09:23 am

The yen edged up against the dollar and the euro in Asian trade Tuesday as investors adjusted their positions.The dollar was trading at 81.42 yen in Tokyo morning trade, down from 81.53 yen in New York late Monday.The euro was changing hands at $1.3223 and at 107.58 yen compared with $1.3218 and 107.76 yen.Although there are risks of a stronger yen coming from position-adjusting after the performances of stock markets in Europe and the United States... the dollar will remain firm against the yen and may reach the 82-yen level, said Masafumi Yamamoto, chief currency strategist at Barclays Capital.Japans worsening current account surplus and fears of a sovereign ratings cut, coupled with a sound US economic recovery and receding expectations for further monetary easing -- these dollar-backing factors remain, he said.Overnight, European and US stocks sank on worries about the slowing global economy after China lowered its growth estimate, shrugging off positive numbers from the US services sector.Traders eyes are on the Reserve Bank of Australias interest rate announcement later Tuesday, dealers said.Japan posted a record trade deficit in January, data showed last month, as fuel imports rose following last years nuclear disaster while exports were hit by a strong yen and slumping demand in Europe.Its surplus in the current account, the broadest measure of trade with the rest of the world, tumbled 43.9 percent in 2011 to a 15-year low.