TOKYO (AP): The dollar rose against the yen Friday in Asia as Japanese investment funds bought the dollar amid reports U.S. President George W. Bush intends to discuss ways to resolve the subprime mortgage crisis.
The dollar rose to 116.16 yen midafternoon Friday, from 115.74 yen late Thursday in New York. The euro rose to US$1.3668 from US$1.3637.
Despite some selling of the dollar by Japanese exporters early in the day, Japanese investment funds sold the yen and pushed the dollar higher.
The dollar also got a boost by news that Bush will talk later Friday about ways to help the hundreds of thousands of American borrowers hard hit by the housing slump. Defaults on U.S. subprime housing loans has tightened credit and rocked global financial markets.
"The subprime mortgage market problems may seem to be calming down on the surface," but looking at it closely, the situation is deteriorating, so players are seeking cues from the U.S. Federal Reserve, said Satoshi Okagawa, head of the foreign exchange forward trading group at Sumitomo Mitsui Banking Corp.
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