Yen weakens in Asian trade
The yen weakened against other major currencies in Asian morning trade on Friday as risk sentiment improved, with Tokyo stocks bouncing back following the previous day’s seven-percent plunge.
The yen weakened against other major currencies in Asian morning trade on Friday as risk sentiment improved, with Tokyo stocks bouncing back following the previous day’s seven-percent plunge.
The dollar soared above 100 yen for the first time in more than four years Friday, driven by improved U.S. economic figures and Tokyo’s aggressive credit-easing that aims to revive Japan’s sluggish economy.
Sony Corp. is back in the black for the fiscal fourth quarter, recording a 93.9 billion yen ($948 million) profit, with big help from a weaker yen that boosts overseas earnings.
The dollar turned softer in Asia on profit-taking Friday, hovering below the 100 yen level after enjoying a recent rally from the Bank of Japan’s huge stimulus measures.
The yen took a breather in its rapid fall to near four-year lows in Asia on Tuesday, pausing the downward trajectory it began when the Bank of Japan announced aggressive monetary easing last week.
The Bangko Sentral ng Pilipinas has shrugged off concerns over the effects of a weakened Japanese yen on Philippine trade, saying that Filipino exporters may actually benefit from the currency movement.
Asian markets mostly rose on Wednesday after US Federal Reserve head Ben Bernanke reaffirmed the central bank’s huge monetary easing scheme, but a stronger yen sent Tokyo lower.
Asian markets were mostly lower on Tuesday as Tokyo slipped following an uptick in the yen while Chinese shares fell on fears Beijing may act to rein in soaring property prices.
Japan’s weak yen is turning the tables on its Asian exporting rival South Korea. For several years, South Korean manufacturers such as Hyundai and Samsung Electronics increased their market share at the expense of Japanese rivals partly because South Korea’s currency, the won, was weak while the yen was rising against the dollar and other currencies.
Japanese shares opened 0.48 percent higher Friday, as investors continued to rally around the yen’s depreciation.
The yen tumbled to a 20-month low in Asian trading Wednesday amid expectations that incoming Japanese premier Shinzo Abe would push for aggressive monetary easing to boost the nation’s limp economy.
The dollar was flat against the yen in Asia Thursday after climbing in New York on hopes Japanese elections next month will the opposition win, and pave the way for further central bank easing.
