TOKYO (AP): The dollar was largely flat against the yen in Asia Monday as non-Japanese short-term investors sold the U.S. currency to lock in profits after it rose Friday amid a recovery on Wall Street and stronger-than-expected U.S. economic data.
The U.S. dollar was trading at 116.22 yen at 2:50 p.m. (0550 GMT) Monday, up from 116.21 yen late Friday in New York. The euro rose to US$1.3674 from US$1.3667.
The dollar got a lift from strong U.S. housing sales and durable goods data for July Friday as well as support from gains in U.S. stocks. However, selling by non-Japanese investors as well as Japanese exporters early in the Asian session Monday hampered the currency's further advance.
Tokyo traders said concerns that the U.S. sub-prime mortgage issue will slow growth even though global financial markets appear to be stabilizing.
"The dollar could again slide down below 115.00 yen this week," said Michiyoshi Kato, a senior trader at Mizuho Corporate Bank.
"The panic over a possible global credit crunch has subsided for now thanks to efforts by central banks in industrialized countries, but we still have fears that the subprime loan woes may damage the U.S. real economy," he said. "Investors will likely reactnervously to U.S. economic indicators hereafter."(***)
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