Dollar idles after tumble from 19-month peak; Aussie firm before RBA

TOKYO - The US dollar nursed its wounds on Tuesday following its biggest drop in nearly three weeks against major peers, as Federal Reserve policymakers allayed investor fears of a very rapid tightening of monetary policy.

The Australian dollar remained firm after its biggest jump in eight months overnight ahead of a Reserve Bank of Australia policy decision later on Tuesday, with expectation building that Governor Philip Lowe will capitulate on his prior conviction that an interest rate rise this year was unlikely.

The dollar index, which measures the greenback against six rivals, ticked 0.05 percent higher to 96.715, barely making a dent in Monday's 0.59 percent tumble. It was at an almost 19-month high of 97.441 at the end of last week, as investors pondered chances the Fed could raise rates by 50 basis points in March.

Trading in Asian hours may be subdued with several markets on holiday for the Lunar New Year.

A chorus of Fed officials on Monday backed a lift-off in rates in March, but spoke cautiously about what might follow.

Money markets price in a quarter-point rise for March, and four more by year-end.

"Recent Fed remarks appeared to push back on the odds of a 50bp rate hike in March," putting the focus on economic data this week for clues on the pace of policy tightening, including the closely watched monthly payrolls report on Friday, TD Securities strategists wrote in a note.

US payrolls are forecast to show a gain of 153,000 jobs for January, down from 199,000 in December, with the unemployment rate holding steady at 3.9 percent, according to a Reuters poll.

Meanwhile, the Aussie was little changed at $0.7067 after soaring 1.06 percent on Monday, its biggest gain since early June.

Australian inflation is surging at the fastest annual pace since 2014, suggesting price pressures are not as benign and transitory as policymakers thought they would be.

"It is impractical and unlikely the RBA can continue to hold a dovish stance," the TD Securities strategists wrote, predicting a hike in August or earlier.

A Reuters poll of economists puts the odds of a first hike in November.

The Bank of England holds its policy meeting on Thursday, with a Reuters poll predicting a second rate hike in less than two months after UK inflation jumped to its highest in nearly 30 years.

The European Central Bank also meets on Thursday. While no policy change is expected, analysts said the Fed's looming rate hikes will narrow the ECB's window for action.

The euro slipped 0.11 percent to $1.12235, following a 0.80 percent jump on Monday.

Sterling was flat at $1.34385 after gaining 0.33 percent in the previous session.

The greenback was little changed at 115.125 yen.

(Editing by Jacqueline Wong)

-reuters

Dollar clings to most of its gains as risk sentiment improves

TOKYO — The dollar held on to most of its gains on Tuesday, following a sharp rebound on improving investor risk sentiment as worries over North Korea and Hurricane Irma receded.

The dollar index, which tracks the greenback against a basket of six major rivals, was steady at 91.874, after it skidded to a 2-1/2-year low of 91.011 on Friday.

The euro was little changed at $1.1955 after shedding 0.7 percent overnight. The common currency reached $1.2092 on Friday, its highest since January 2015, as the dollar suffered a broad retreat.

Higher US Treasury yields also bolstered the dollar, as the benchmark US 10-year note yield rose to 2.135 percent from its close of 2.125 percent on Monday, and 2.061 percent on Friday.

"Some people said the dollar's fall and recovery was not strange, since US yields got so low," said Masashi Murata, currency strategist for Brown Brothers Harriman in Tokyo.

"But the market is still sensitive to risk-off news, maybe from North Korea, or from disappointing US economic data," he said. "So that's why the dollar is still struggling to find its way."

The dollar was steady at ¥109.39 after rallying 1.4 percent on Monday, its biggest one-day surge since mid-January.

It had slumped to a 10-month low of ¥107.320 on Friday, when Hurricane Irma threatened Florida and as financial markets braced for the possibility of another missile or nuclear test to mark North Korea's founding day on Sept. 9. The yen tends to benefit during times of economic and political uncertainty due to Japan's net creditor nation status.

But Pyongyang's anniversary passed without further tests, and Irma lost strength and was downgraded to a tropical storm after battering Florida over the weekend.

"Receding fear over Hurricane Irma and North Korea was a key factor behind the dollar's bounce. Market focus is likely to return to fundamentals, although there aren't many major events scheduled this week that could decide the direction for currencies," said Shin Kadota, senior strategist at Barclays in Tokyo.

Major US allies in Asia welcomed on Tuesday the UN Security Council's unanimous vote to step up sanctions on North Korea, with its profitable textile exports now banned and fuel supplies to the reclusive North capped after its sixth nuclear test.

The Swiss franc, often sought in times of global risk aversion along with the yen, was flat at 0.9560 per dollar. The franc had rallied to a two-year high of 0.9421 on Friday.

The pound edged up 0.1 percent to $1.3175 after losing 0.25 percent on Monday.

Sterling fared better against the euro, brushing a fresh one-month high of 90.83 pence, aided by speculation that the Bank of England may sound more hawkish on interest rates in defense of the currency at its policy meeting on Thursday.

The Australian dollar was 0.2 percent lower at $0.8015, extending its retreat from a two-year peak of $0.8125 scaled on Friday.

The Chinese yuan pulled further away from Friday's 21-month high against the dollar of 6.5432, after China's central bank on Monday lifted measures put in place to support the yuan when it came under selling pressure. — Reuters

Asian markets lower, rattled by rising tensions in Koreas

SEOUL, South Korea — Asian stocks were lower on Friday as investors fretted over rising geopolitical tensions and the situation on the Korean Peninsula. Many markets were closed for public holidays.

KEEPING SCORE: Tokyo’s Nikkei 225 finished 0.5 percent lower at 18,335.63 and South Korea’s Kospi slipped 0.6 percent to 2,134.88. The Shanghai Composite index dropped 0.9 percent to 3,246.07. Markets in Hong Kong, Singapore and other Southeast Asian countries were closed.

NORTH KOREA: Analysts said investors were seeking safe havens on concern North Korea may be planning a nuclear test. As it prepares for the 105th anniversary of the birth of its founder Kim Il Sung on Saturday, North Korean has intensified its rhetoric, warning of strong retaliation against any aggression as U.S.-South Korea hold military exercises.

ANALYST’S VIEWPOINT: “Geopolitics seemed to dominate over the past week with the ramifications of the U.S.’ missile strike on Syria still reverberating and tensions around North Korea steadily building,” Shane Oliver, chief economist at AMP Capital, said in a commentary. “The issues around Syria are likely to settle down assuming U.S. involvement does not escalate, but North Korea is more risky.”

WALL STREET: U.S. stocks finished lower for the third straight day on Thursday as energy stocks led the decline. The Standard & Poor’s 500 index slid 0.7 percent to 2,328.95. The Dow Jones industrial average fell 0.7 percent to 20,453.25. The Nasdaq composite index lost 0.5 percent to 5,805.15. U.S. markets will be closed Friday for the Good Friday holiday.

OIL: On Friday, the New York Mercantile Exchange and the London Metal Exchange were closed. On Thursday, benchmark U.S. crude rose 7 cents to close at $53.18 per barrel in New York. Brent crude, used to price international oils, added 3 cents to close at $55.89 per barrel in London.

CURRENCIES: The dollar resumed its fall after briefly bouncing back from its slide. The dollar has continued its slide following President Donald Trump’s comment in an interview with The Wall Street Journal that the dollar was “getting too strong.” The dollar was trading at 108.93 yen, down from 109.12 yen. The euro rose slightly to $1.0620 from $1.0616.

source: business.inquirer.net

Dollar retreats as Trump takes over; most global stocks fall

NEW YORK—The dollar retreated Monday, with warnings of wild volatility ahead, as Donald Trump began his presidency by attacking global trade deals and promising to put America first.

Most large global equity markets also fell amid uncertainty over the new US leader’s plans. Wall Street, London, Frankfurt, Paris and Tokyo all closed lower.

“America first, markets second,” said LCG analyst Jasper Lawler of the day’s sentiment on trading floors.

“Attempts to break out into new highs for the year have been temporarily shelved after Donald Trump opted for a protectionist, anti-establishment inauguration address,” his note to clients added.

In foreign exchange, the euro jumped to $1.0763 from $1.0697 on Friday.

‘Apocalyptic tone’

“The greenback … seems to have been shaken both by the apocalyptic tone set by Trump at his inauguration, and the global protests that greeted the former Apprentice host’s ascension to the highest office in the land,” said Spreadex analyst Connor Campbell.

Trump followed up an inauguration speech seen as angry and protectionist by making his first official act the withdrawal from the 12-nation Trans-Pacific Partnership. Trump also said he would renegotiate the North America Free Trade Agreement, threaten to impose border taxes, and his chief spokesman said the new president would not hesitate to confront China over the South China Sea.

READ: Trump torpedoes Pacific trade pact

Investors greeted Trump’s surprise election win in the hopes he would win pro-growth measures such as public works spending, lower taxes and regulatory reforms. Trump confirmed on Monday he plans to pursue those priorities, but markets have been worried the tough talk will lead to a trade war.

Doubts about his spending promises also took their toll on the US currency.

“Sellers swiftly exploited the lack of clarity in the (inauguration) speech regarding the proposed fiscal stimulus measures,” said Lukman Otunuga, an analyst at FXTM, predicting more trouble ahead for the greenback.

“The growing threat of Donald Trump’s proposed fiscal stimulus failing to keep up with market expectations may ensure dollar weakness becomes a recurrent theme in the short term,” he said.

The US unit was down more than four percent on the yen from the highs touched late in December. It was also well down against the euro and even against the pound despite concerns about Britain’s exit from the European Union.

“I suspect we’re entering extremely volatile times for the dollar,” Stephen Innes, senior trader at OANDA, said in a note.

Trump last week said the greenback was too strong against China’s yuan and claimed this was “killing” the US economy.

Key figures at 2200 GMT

New York – Dow: DOWN 0.1 percent at 19,799.85 (close)

New York – S&P 500: DOWN 0.3 percent at 2,265.20 (close)

New York – Nasdaq: DOWN less than 0.1 percent at 5,552.94 (close)

London – FTSE 100: DOWN 0.7 percent at 7,151.18 points (close)

Frankfurt – DAX 30: DOWN 0.7 percent at 11,545.75 (close)

Paris – CAC 40: DOWN 0.6 percent at 4,821.41 (close)

EURO STOXX 50: DOWN 0.9 percent at 3,271.41 (close)

Tokyo – Nikkei 225: DOWN 1.3 percent at 18,891.03 (close)

Shanghai – Composite: UP 0.4 percent at 3,136.77 (close)

Hong Kong – Hang Seng: UP 0.1 percent at 22,898.52 (close)

Euro/dollar: UP at $1.0763 from $1.0697

Pound/dollar: UP at $1.2524 from $1.2365

Dollar/yen: DOWN at 112.73 yen from 114.58 yen

Oil – West Texas Intermediate: DOWN 47 cents at $52.75 per barrel

Oil – Brent North Sea: DOWN 26 cents at $55.23 per barrel

source: business.inquirer.net

What it means if Trump names China a currency manipulator

WASHINGTON  — President-elect Donald Trump has vowed to name China a currency manipulator on his first day in the White House.

There’s only one problem—it’s not true anymore. China, the world’s second-biggest economy behind the United States, hasn’t been pushing down its currency to benefit Chinese exporters in years. And even if it were, the law targeting manipulators requires the U.S. spend a year negotiating a solution before it can retaliate.

Trump spent much of the campaign blaming China’s for America’s economic woes. And it’s true that the U.S-China trade relationship is lopsided. China sells a lot more to the United States than it buys. The resulting trade deficit in goods amounted to a staggering $289 billion through the first 10 months of 2016.

But in fact, for the past couple of years China has been intervening in markets to prop up its currency, the yuan, not push it lower.

What does currency have to do with the trade gap?

When China’s yuan falls against the U.S. dollar, Chinese products become cheaper in the U.S. market and American products become more costly in China.

So the U.S. Treasury Department monitors China for signs it is manipulating the yuan lower. Treasury has guidelines for putting countries on its currency blacklist. They must, for example, have spent the equivalent of 2 percent of their economic output over a year buying foreign currencies in an attempt to drive those currencies up and their own currencies down.

Treasury hasn’t declared China a currency manipulator since 1994.

What would happen if the US declared China a currency manipulator?

Probably not much, at least initially.

If Treasury designates China a currency manipulator under a 2015 law, it is supposed to spend a year trying to resolve the problem through negotiations.

Should those talks fail, the U.S. can take a number of small steps in retaliation, including stopping the U.S. Overseas Private Investment Corp., a government development agency, from financing any programs in China. Trouble is, the United States already suspended OPIC operations in China years ago — to punish Beijing in the aftermath of the bloody 1989 crackdown in Tiananmen Square.

So naming China a currency manipulator is mostly “just a jaw-boning exercise,” said Amanda DeBusk, chair of the international trade department at the law firm of Hughes Hubbard & Reed and a former Commerce Department official. “There’s no immediate consequence.”



Is China guilty of using currency to help its exporters?

For years, China pretty clearly manipulated its currency to gain an advantage over global competitors. It bought foreign currencies, the U.S. dollar in particular, to push them higher against the yuan. As it did, it accumulated vast foreign currency reserves — nearly $4 trillion worth by mid-2014.

But now the Chinese economy is slowing, and Chinese companies and individuals have begun to invest more heavily outside the country. As their money leaves China, it puts downward pressure on the yuan.

The yuan has dropped nearly 7 percent against the dollar so far this year. The Chinese government has responded by draining its foreign exchange reserves to buy yuan, hoping to slow the currency’s fall. China’s reserves have dropped by $279 billion this year to $3.05 trillion.

If Beijing stepped back and let market forces determine the yuan’s level, it likely would fall even faster, giving Chinese exporters even more of a competitive edge.

So Beijing is doing the opposite of what Trump says it’s doing. Cornell University economist Eswar Prasad earlier this month called Trump’s plans to name China a currency manipulator “unmoored from reality.”

“The whole discussion is ironic,” said David Dollar, senior fellow at the Brookings Institution and a former official at the World Bank and U.S. Treasury Department. “It’s out of date.”

Could Trump do anything on his own?

Gary Hufbauer, an expert on trade law at the Peterson Institute for International Economics, notes that as president, Trump could nonetheless escalate any dispute over the currency on his own. Over the years, Congress has ceded the president broad authority to impose trade sanctions. Trump has threatened to slap a 45 percent tax, or tariff, on Chinese imports to punish it for unfair trade practices, including alleged currency manipulation.

Brookings’ Dollar said China likely would bring a case to the World Trade Organization “against any protectionist measures that are a violation of U.S. commitments to the WTO,” which oversees the rules of global commerce and rules on trade disputes.

Some trade analysts wonder if Trump is using the tariff threat as a negotiating tool to win concessions from China.

Whatever the U.S. motive, China has a consistent record of retaliating against trade sanctions. When the Obama administration slapped tariffs on Chinese tire imports in 2009, for instance, China lashed back by imposing a tax on U.S. chicken parts.

China’s Global Times newspaper, published by the ruling Communist Party’s People’s Daily, has already speculated that “China will take a tit-for-tat approach” if Trump’s tariffs are enacted. The paper suggested that Beijing might limit sales of Apple iPhones and Boeing jetliners in China.

“The Chinese are predictable and reliable,” DeBusk said. “If they get punched, they punch back.” TVJ

source: business.inquirer.net

Pound slumps against euro, dollar

NEW YORK, United States — The British pound slumped to a fresh three-year low against the euro Monday and edged lower on the dollar, as signs of weakness mounted in the British economy.

At 86.80 pence on the euro, the pound was at its weakest level since August 2013.

Meanwhile sterling fell to $1.2883, just barely above its $1.2798 post-Brexit vote level that marked a three-decade low against the US greenback.

The currency’s fall came as data from Britain showed London residential rents fell for the first time in six years in July, amid worries the June 23 vote to exit the European Union was already having an impact on the economy.

The rental data came on the heels of numbers showing home prices fell for the second straight month.

“In the month of August, the British pound has been the weakest currency and the trend continued today,” said Kathy Lien of BK Asset Management.

“The main reason why the currency is weak is because investors are worried about this week’s UK economic reports.”

Even if the formal moves to leave the European Union will not be taken by the government until next year, Lien said, “the damage has been done and consequences are just beginning to appear.”

source: business.inquirer.net

Dollar up despite US rate hike uncertainty

Tokyo, Japan – The dollar ticked higher on Tuesday despite comments from a Federal Reserve official that cast doubt on a mid-year interest rate hike, while Greece's bailout woes held back the euro.

In Tokyo, the greenback bought ¥119.45, up from ¥119.22 in New York and sharply higher from ¥118.62 in Tokyo earlier Monday.

The euro was mixed, slipping to $1.0724 from $1.0741 while it strengthened slightly to ¥128.07 against ¥128.05 in US trade.

The rise in the dollar came despite a key Federal Reserve official suggesting a US rate hike could be pushed back beyond mid-year.

New York Fed President William C. Dudley said recent inflation data was not strong enough to warrant a near-term rise, even though economic growth was healthy.

"The Fed will likely start tightening later in the year, and there’s a strong appetite in Japan for foreign portfolio and direct investments,” said Taisuke Tanaka, Deutsche Bank's chief currency strategist in Tokyo.

“We continue to recommend buying the dollar-yen on dips.”

The euro remained under pressure after falling Monday on growing worries about Greece's future in the eurozone, as Athens looks to secure billions of euros in bailout cash to pay its enormous debts.

With its creditors refusing to extend a repayment deadline while also haggling over its bailout reforms, the Greek government has ordered all public agencies to hand over their financial reserves.

“Markets are recognizing Greece as a risk factor as everybody knows the tight financing situation,” Keisuke Hino, a foreign-exchange trader at Mizuho Bank, told Bloomberg News.

"Markets expect a default to be avoided but they have to keep the risk in mind.” – Agence France-Presse

source: gmanetwork.com

Asia edgy on lingering growth worries, dollar up

TOKYO - Lingering concerns over global growth kept Asian stocks on a tentative footing on Wednesday, with more signs of gloom in the euro zone economy helping underpin the dollar.

The dollar extended gains after disappointing data out of Germany and Britain checked the euro's recent bounce.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.08 percent, but still not too far off a seven-month low hit at the start of the week.

Tokyo's Nikkei climbed 0.4 percent after touching a two-month trough on Tuesday.

Concerns over faltering global growth triggered a bruising selloff in global equity markets in the past week, and investors remain reluctant to buy into riskier assets as the drumbeat of weak data showed no signs of abating.

Overnight, a closely watched ZEW survey showed German analyst and investor morale fell below zero for the first time in nearly two years in October.

Adding to the gloom, the German government cut its growth forecasts, euro zone industrial production fell, British inflation slowed sharply in September and Fitch warned it may cut France's credit rating.

"Risk-off tone continues to dominate the markets as US equities pared most of the gains while Treasuries remain in demand," Credit Argricole said in a note to clients.

US Treasuries and German Bunds have rallied this week, with the yields on the latter hitting record lows on Tuesday after data reinforced fears the euro zone may be slipping into recession.

Wall Street put up a mixed performance overnight, reflecting the cautious mood in markets. The S&P 500 and Nasdaq booked modest gains to break a three-day string of sharp declines, but the Dow finished down for a fourth day.

The focus in markets is now on Chinese inflation-related data due at 0130 GMT with weaker-than-expected numbers potentially souring still fragile sentiment towards risk assets.

The dollar index, a gauge of the greenback's strength against a basket of major currencies, was up 0.1 percent at 85.941 as the downbeat data took a toll on the euro.

The dollar was up 0.3 percent at 107.33 yen, having pulled back from a one-month low of 106.68 hit the previous day.

The euro traded little changed at $1.2644

In commodities, US crude bounced slightly after posting its biggest percentage loss in about two years overnight on a downgrade in global oil consumption forecasts, projections for another big boost in shale oil and reluctance by OPEC members to cut output.

US crude was up 44 cents at $82.28 a barrel, although mounting evidence of slackening demand and unrelenting US shale output are expected to keep applying downward pressure on the commodity in the mid- to long-term. —Reuters

Dollar up against yen as Japan's trade deficit swells

TOKYO – The dollar rose against the yen in quiet Asian trade Monday after data showed Japan's trade deficit quadrupled year on year in March.

The greenback fetched ¥102.63 in Tokyo mid-day trading, up from ¥102.46 Friday, while the euro was up at ¥141.74 from ¥141.46. The single currency also fetched $1.3810, against $1.3812.

Most leading financial markets around the world were closed Friday and Monday for Easter.

The yen faced moderate selling pressure after Japan said early Monday that its trade deficit surged to $14 billion in March, with a weak yen compounding surging imports as consumers rushed to buy ahead of a sales tax rise on April 1.

But the dollar is unlikely to breach ¥103 any time soon as investor sentiment has yet to completely turn the risk-on mode, says Osamu Takashima, chief FX strategist at Citi Bank Japan, in a morning note.

"We don't feel any sign that aggressive yen selling is set to start amid falling volatility," Takashima said.

Eyes are on the release this week of key economic data, including manufacturing activity around the world as well as retail, jobs and housing figures in the United States. – Agence France-Presse

source: gmanetwork.com

Dollar holds steady in Asia

TOKYO – The dollar held steady Monday following a surge last week on comments from Fed Chief Janet Yellen as Tokyo shares rebounded after hitting a six-week low.

In midday trading, the greenback fetched ¥102.46, rising from ¥102.23 in New York Friday.

The euro was mixed, buying $1.3801 and ¥141.39, compared with $1.3794 and ¥141.87 in US trade.

Tokyo's Nikkei 225 stock index, which added 1.83 percent by the break, was lifted by the yen's weakening against the dollar, boosting exporters' profitability.

Last week the greenback rose after Yellen said the central bank may raise its ultra-low federal funds rate around six months after winding up its asset-purchase stimulus, expected by the end of the year.

But analysts said the dollar's rise was being capped by fears over the Crimean crisis.

"After having risen on the (Federal Open Market Committee) decision... the dollar/yen has become top-heavy due to the situation in Ukraine," Daiwa Securities said.

The crisis in Europe – which has rattled global financial markets – is set to dominate a nuclear security summit opening in The Hague on Monday.

Russia is facing possible exclusion from the G8 club of rich nations as punishment for its absorption of Crimea following the ouster of Ukraine's pro-Moscow leader last month.

Analysts said the simmering tensions could see traders move back into the yen, which is viewed as a safe-haven unit in times of turmoil or uncertainty.

Forex traders were also watching Chinese data as fresh figures said manufacturing activity contracted in March to its weakest rate in eight months.

HSBC's preliminary purchasing managers index (PMI), which tracks manufacturing activity in China's factories and workshops, fell to 48.1 from a final reading of 48.5 in February, the British bank said in a statement.

A reading above 50 indicates growth, while anything below signals contraction.

But investors took the latest Chinese figures in their stride.

"The whole of Asia seems to have factored in lowered expectations for China's growth," said Yoshihiro Okumura, general manager at Chibagin Asset Management. – Agence France-Presse

source: gmanetwork.com

Dollar off lows but still vulnerable as Fed meeting looms

SYDNEY - The dollar clung onto modest overnight gains early in Asia on Tuesday, but stayed near a nine-month trough as investors bet the Federal Reserve will this week set the course for its massive stimulus program to be maintained into early next year.

The dollar index was steady at 79.344 after drifting up 0.2 percent on Monday. However, it remained not far off Friday's 78.998—a low not seen since Feb. 1.

A break there could pave the way for a test of this year's trough of 78.918 and then the September 2012 low of 78.601.

Traders said the market lacked conviction and moves were driven more by flows and position adjustments ahead of the Fed policy meeting over Tuesday and Wednesday rather than by fundamentals.

Indeed, investors would probably have sold the dollar if going by the latest string of data that suggested a flagging US economy.

Figures on Tuesday showed US manufacturing output barely rose in September and contracts to buy previously owned homes recorded their largest drop in nearly 3-1/2 years.

"The dollar's ability to gain against this backdrop likely reflects positioning, with USD shorts having built up quickly in October according to our metrics," analysts at BNP Paribas wrote in a client note.

That has left the dollar increasingly less vulnerable to negative news and with more scope to rally if data begins to beat expectations again, they added.

Traders also said it is unlikely the dollar would react too negatively should the Fed choose to wait for more evidence of how badly Washington's budget battle has hurt the US economy before deciding on whether or not to scale back stimulus.

The dollar index has fallen 1.1 percent so far this month, adding to a 2.3 percent slide in September.

One of the key beneficiaries of the dollar's decline has been the euro, which as recently as Friday rose to its highest since November 2011 at $1.3833.

It last traded at $1.3788 after slipping 0.1 percent on Monday. Traders see chart resistance around $1.3800/70 with a convincing break there setting the scene for a retest of the Oct. 2011 peak of $1.4248.

Against the yen, the dollar bought 97.66, having gained 0.3 percent, while the euro fetched 134.62 yen after Monday's 0.2 percent rise.

A standout mover in early Asian trade was the Australian dollar, which dipped about a third of a US cent to a session low of $0.9535 after the head of Australia's central bank again tried to talk down the currency.

Reserve Bank of Australia governor Glenn Stevens said it was likely the Aussie dollar would fall materially in the future given the country's declining terms of trade, a shift that would be welcomed to trade-exposed sectors of the domestic economy.

The Aussie last stood at $0.9542, well off a five-month high of $0.9758 set last Wednesday. —Reuters

source: gmanetwork.com