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US dollar sheds 122 yen in early trade

US dollar sheds 122 yen in early trade

LONDON: The U.S. dollar fell to the upper 122 yen zone Tuesday morning in Tokyo on selling by Japanese exporters.

At noon, the dollar fetched 122.73-74 yen compared with 123.07-17 yen in New York and 122.82-84 yen in Tokyo at 5 p.m. Monday.

The euro was quoted at $1.0580-0582 and 129.86-87 yen against $1.0560-0570 and 129.98-130.08 yen in New York and $1.0583-0584 and 129.98-130.02 yen in Tokyo late Monday afternoon.

After maintaining its solid footing set overnight in New York on expectations of a U.S. interest rate hike later this month, the dollar weakened in midmorning on selling by Japanese exporters, which repatriate their overseas revenues, dealers said. Some traders also sold the dollar to lock in early gains.

“Those who bought the dollar at the 122 yen level seemed to have sold at the 123 yen range to take profits,” capping the topside of the U.S. unit, said Yuzo Sakai, manager of foreign exchange business promotion at Tokyo Forex & Ueda Harlow.

Market participants had paid attention to Chinese economic data released in the morning, including an official manufacturing purchasing managers’ index for November, for hints on the health of the Chinese economy, but found few cues due to patchy results, Sakai said.

The euro rose against the dollar after being sold on bets the European Central Bank would additionally ease its monetary policy later this week, while falling against the yen.