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TOKYO – The dollar eased in Asia on Monday after a Japanese minister said the recent correction against the yen was nearly over, but analysts said the greenback would soon resume its climb.
The dollar was changing hands at 102.84 yen in Tokyo morning trade, down from 103.19 yen in New York late Friday but still up from the lower 102-yen range seen before the Tokyo market closed on Friday.
The euro was quoted at $1.2825 and 131.90 yen against $1.2834 and 132.44 yen in US trade.
The dollar was supported at 102.60 yen and could test 104 yen in the short-term after breaching 103 yen late Friday, said Citibank Japan chief forex strategist Osamu Takashima.
The dollar dipped early Monday after Economy, Trade and Industry Minister Akira Amari on Sunday suggested the Japanese government may not want the yen to weaken further.
Responding to a question on how far the unit should fall, Amari said: “It’s being said that the correction of the strong yen is largely completed. If the yen keeps on weakening a lot more, it will have a negative impact on peoples’ lives (by pushing up import costs).”
His comment came after the dollar rose past the 103-yen mark for the first time in more than four years late Friday, making a three-percent gain in the past week alone and a 30-percent rise since mid-November.
The yen started tumbling in December after Prime Minister Shinzo Abe started his successful campaign for office on a pro-spending, weak-yen platform. Recent solid data on the US economy fuelled the dollar’s ascent.
Daisaku Ueno, senior forex strategist at Mitsubishi UFJ Morgan Stanley, said the dollar fell early Monday as some traders used Amari’s comments as “an excuse to take profits after the dollar breached 103 yen”. Dow Jones Newswires contributed to this article