The pair closed in NY Friday at Y97.90 after rate had seen session lows of Y96.87 earlier in the day in Asia before recovering to Y98.13 in Europe. Rate then bounced between Y97.32-99 through the NY session. Rate picked up early demand pre Tokyo open on expectations that the Nikkei would open in positive territory, the move also helped as the ruling governing coalition won a respectable majority in the Tokyo metropolitan area. Nikkei did indeed open with a positive tone which allowed dollar-yen to push above Y98.00 to an initial high of Y98.50 before the index turned negative and rate dipped back to Y98.13, the move down aided by suggested exporter supply at the Tokyo fix. The dip attracted spec and tech demand, the move down in UST’s prompting decent buying that lifted the rate through the earlier high and on to Y98.70 before it settled between Y98.35/55 ahead of the European open. Rate moves remain dictated by UST yields. Asian traders note sell interest from Y98.80 through to Y99.00.
