TOKYO, Aug. 22 (Kyodo) — The U.S. dollar hovered at the upper 117 yen level Friday morning in Tokyo as its recent falls made market players wary of intervention by Japanese monetary authorities.
At noon, the dollar traded at 117.82-85 yen, compared with Thursday’s 5 p.m. quotes of 117.75-85 yen in New York and 118.00-03 yen in Tokyo.
It moved between 117.75 yen and 117.94 yen in the morning.
Dealers said the dollar’s falls against the yen over the past few days were due mostly to massive selling of the euro against the yen.
”Investors, especially hedge funds, are aggressively selling euro-denominated assets in the belief that the euro’s downtrend will continue for the time being,” said Hidehiko Inamura, vice president of the foreign exchange department at Citibank in Tokyo.
The single European currency’s weakness stems from recent bleak economic data concerning euro-zone countries, which contrast with upbeat figures in Japan and the United States.
The dollar was well supported at 117.50 yen in the morning as many players believe Japanese monetary authorities are determined to prevent it from falling below that level, dealers said.
Should the dollar break below the line, it may fall as low as the 115 yen level, some dealers said.
