AFP, Tokyo :
The dollar was under pressure against the yen and euro on Friday as confidence in the global economy headed south and hopes for a September US interest rate hike faded.
The greenback slipped to 123.02 yen, down from 123.38 yen in New York and well down from rates above the 124 yen level seen earlier Thursday in Tokyo.
The euro also benefited from market jitters, with the 19-nation unit quoted at $1.1279 and 138.74 yen, up from $1.1241 and $138.69 US trading.
“The euro may be gaining more than other currencies from the reduction in expectations of Fed tightening,” said Sean Callow, a strategist at Westpac Banking, after minutes from the US Federal Reserve’s last meeting published this week dampened hopes for an imminent rate rise.
Market sentiment has dived as concerns about the global economy soared making the yen, seen as a safe-haven in times of uncertainty or turmoil, more attractive.
That slump in confidence is largely tied to uncertainty over China, the world’s number two economy, after the shock devaluation of the yuan last week added to fears that growth is slowing more than thought.
Japanese Finance Minister Taro Aso on Friday cautioned over the devaluations and any future manipulation of exchange rates, saying Tokyo would face a “difficult” task in responding if such moves became frequent, without elaborating.
The dollar was under pressure against the yen and euro on Friday as confidence in the global economy headed south and hopes for a September US interest rate hike faded.
The greenback slipped to 123.02 yen, down from 123.38 yen in New York and well down from rates above the 124 yen level seen earlier Thursday in Tokyo.
The euro also benefited from market jitters, with the 19-nation unit quoted at $1.1279 and 138.74 yen, up from $1.1241 and $138.69 US trading.
“The euro may be gaining more than other currencies from the reduction in expectations of Fed tightening,” said Sean Callow, a strategist at Westpac Banking, after minutes from the US Federal Reserve’s last meeting published this week dampened hopes for an imminent rate rise.
Market sentiment has dived as concerns about the global economy soared making the yen, seen as a safe-haven in times of uncertainty or turmoil, more attractive.
That slump in confidence is largely tied to uncertainty over China, the world’s number two economy, after the shock devaluation of the yuan last week added to fears that growth is slowing more than thought.
Japanese Finance Minister Taro Aso on Friday cautioned over the devaluations and any future manipulation of exchange rates, saying Tokyo would face a “difficult” task in responding if such moves became frequent, without elaborating.
