JPY enjoyed early gains this morning, thanks to worries about deteriorating security conditions in Iraq and Ukraine, while concerns about commodity prices also weighed on yen crosses. Dollar-yen opened at Y102.06 while euro-yen started at Y138.13 this morning in Asia. Dollar-yen slipped through Y102.00 but initially held above Y101.95 in early dealings. A lower open in Japanese stock markets pulled dollar-yen down further, and euro-yen also retreated to Y137.98. Dealers said dollar-yen demand from Tokyo-based accounts initially held the pair’s losses, these spotted around Y101.75/70. Offers however remained strong through the morning, particularly from speculative accounts, seen from around the region of the previous session’s high of Y102.15. Dollar-yen eventually extended the lows to Y101.75 in the late morning as euro-yen also sank to fresh lows for the morning at Y137.79. Dollar-yen was last at Y101.79 while the cross was at Y137.84, both near their lows so far. Those rumored bids are said to still be in place from Y101.70 with more at Y101.50, according to dealers, Up top, gains are expected to be limited to last Friday’s US high.
