Reply #28: Dollar approaches 107 yen line, overcoming early selling in Tokyo

[UpInArms]

http://www.hedgeco.net/news_story.php?id=2382&flag=2

TOKYO, Feb. 19 (Kyodo) -- The U.S. dollar overcame early selling and attempted to retake the 107 yen line Thursday in Tokyo as hedge funds running short-term funds continued to buy back the currency.

At 5 p.m., the dollar was quoted at 106.72-74 yen, compared with Wednesday's 5 p.m. quotes of 106.70-80 yen in New York and 105.57-60 yen in Tokyo. It moved between 106.30 yen and 106.88 yen during Thursday trading in Tokyo, trading most actively at 106.60 yen.

<snip>

In the morning, the dollar trimmed sharp overnight gains above 107 yen and mostly traded around the mid-106 yen level as it faced selling by Japanese exporters.

''The dollar briefly dropped to 106.30 yen from an early high of 106.77 yen, which was a (high) level not seen for a long time for exporters'' in Japan, said Tatsuro Karitani, a foreign exchange manager at Mizuho Corporate Bank.

But the early selling gave way to dollar buybacks possibly by hedge funds based in the United States and Middle East in the late morning, dealers said.

<snip>

But dealers said maybe not all of the dollar's buying against the yen stemmed from the shrinking euro gains. Japanese monetary authorities might have secretly jumped on the bandwagon to depreciate the yen, they said.

ya think the BoJ would secretly do that? :evilgrin: