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Dollar slips further against yen in early trading

Dollar slips further against yen in early trading
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First Published: Fri, Aug 17 2007. 09 49 AM IST
Updated: Fri, Aug 17 2007. 09 49 AM IST
AP
Tokyo: The dollar slipped further against the yen in early Asian trading Friday, 17 August, after tanking overnight in New York as investors dumped the US currency amid a global tumble in shares.
The dollar was trading at 113.10 yen at 11:50am (0250 GMT), down from 113.11 yen late Thursday in New York.
Overnight, the greenback plunged as low as 112.01 yen — the lowest level since June 2006 — as nervous traders shied away from risky yen carry trades, which involve selling off the low-yielding yen in favor of higher-yielding dollars.
In Japan, the strong yen clouded the outlook for exporters, with a major business daily saying companies were less likely to upgrade their earnings outlooks for the year. A higher yen makes Japanese exports more expensive and less competitive overseas.
Affected are companies like electronics maker Canon Inc., which has calculated its earnings outlook at about 120 yen to the dollar, the Nikkei business daily said Friday.
Sony Corp. had also expected the dollar to trade at 117 yen when announcing its April-June earnings results, according to the Nikkei.
The yen was also buoyed by dampened expectations the Bank of Japan will hike interest rates at its policy meeting next week, traders said.
Meanwhile, Japan’s benchmark Nikkei 225 index continued its slide, falling 2.33% in morning trade Friday to its lowest level since November, fueled by global jitters.
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First Published: Fri, Aug 17 2007. 09 49 AM IST
More Topics: Asia | Dollar | yen | foreign exchange | currency |