The dollar rose against the safe-haven yen in Asia on Tuesday as risk-taking sentiment increased on fading concern of an imminent US military strike on Syria and improved economic data.
The dollar rose to 99.62 yen in morning Asian trade from 99.34 yen in London late Monday and the 98-yen range in Tokyo Monday.
“The market hasn’t completely turned to risk-on mode, but the pair (dollar-yen) is likely to keep the momentum from yesterday,” said Osao Iizuka, head of forex trading at Sumitomo Mitsui Trust Bank. The dollar “looks strong” against the yen but its topside could be capped at 100.00 before US jobs data Friday and more Japanese exporter selling, he told Dow Jones Newswires.
The euro changed hands at $1.3139, against $1.3193 in European trade, while the single currency stood at 131.39 yen against 131.07 yen in Europe. US financial markets were closed Monday for the Labor Day federal holiday.
National Australia Bank said the improved sentiment on upbeat Chinese manufacturing released on the weekend “spilled over into European markets overnight” with the release of improved data for eurozone nations. A survey Monday showed eurozone manufacturing activity hit a 26-month high in August, confirming other recent data that shows the bloc coming out of a deep recession.
