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Wednesday, January 14, 2015, Magh 1, 1421, Robiul Awal 22, 1436 Hijr

Yen loses early gains in Asia
Published : Wednesday, 14 January, 2015,  Time : 12:00 AM,  View Count : 8

TOKYO, Jan 13: The yen lost its early gains on Today after a short-lived rally driven by concerns over tumbling oil prices.
In afternoon trading, the dollar swung to 118.66 yen, up from 118.27 yen in New York and 117.94 yen earlier Tuesday in Tokyo, while the euro was also stronger at 140.33 yen, from 139.98 yen in US trade.
There was no fresh news or data behind the moves," said Daisuke Karakama, a forex trader at Mizuho Bank.
In morning deals, traders bought the yen as tumbling oil prices sent investors scurrying for safer investments. The yen is seen as a stable bet in times of turmoil and uncertainty.
The euro, meanwhile, fetched $1.1826, edging lower from $1.1834 in New York as investors gauge whether the European Central Bank (ECB) will soon expand its stimulus, while the US Federal Reserve eyes a mid-year interest rate hike.
Everyone feels that a weaker oil price will lead to weaker inflation for the US," Stan Shamu, a Melbourne-based market strategist at IG Ltd., told Bloomberg News.
"This will see them (the Fed) delay their rates lift off. That will probably see a bit of steam coming out of the US dollar."
On Monday, crude sank again after Goldman Sachs slashed its price outlook for the commodity, adding to anxiety about a global oversupply, weak demand and soft growth in key Chinese and European markets.
In early Asian trade Tuesday, Brent crude for February delivery fell 75 cents to $46.68 a barrel -- its lowest level April 2009. On Monday it plunged more than five percent to end below $50.
US benchmark West Texas Intermediate shed 73 cents to $45.34 -- its weakest since March 2009 -- a day after losing 4.7 percent.
Investors were also looking ahead to the ECB's meeting on January 22 for some clues on its intention to launch a quantitative easing (QE) programme that would see it buy government bonds -- similar to the US Federal Reserve during the global financial crisis -- to fend off deflation in the eurozone.
The dollar was mixed against other Asia-Pacific currencies.
It weakened to 62.11 Indian rupees from 62.17 rupees on Monday, to 44.81 Philippine pesos from 44.86 pesos, and to Tw$31.82 from Tw$31.84.     ?Agencies

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