JPY started in Asia slightly on the backfoot, with dollar-yen rising early to Y97.44 high after opening at Y97.28. Euro-yen followed suit with a move up to Y134.44 morning high after starting at Y134.26. The gains petered out at the stock market open as risk aversion took hold. Some traders also highlighted concerns over recent rises in Chinese money market rates. Dollar-yen trimmed the initial morning gains and slipped to around Y97.20 as the 200-day moving average at Y97.35 again failed to provide any meaningful support, while the cross dipped to Y134.08. Dollar-yen bids near Y97.00 then took hold, giving dollar-yen a mild lift back toward Y97.40. That was againshortlived as China’s overnight repo rate opened at its highest since July and as Japanese stocks then ended the morning down. Dollar-yen then continued to fresh lows for the session in the early afternoon, sliding below Y97.00 to Y96.94 amid a round of broad US dollar offloading, rumored to have been led by an Asian central bank looking to re-balance its books after recent dollar-buying intervention, dealers said. Dollar-yen was last at Y97.02 while the cross was at Y134.09.
