By James Thornhill, BridgeNews
New York--Feb. 12
The dollar extended Friday's gains against the yen overnight amid fresh fears over the health of the Japanese economy. The pair hit an 18-day high of 117.96 before rumored Chinese sales in euro/yen emerged to limit the gains.
Euro/dollar hit a five-day high of 93.10 cents, but was also reined in by euro/yen.
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* Dollar/Swiss franc bounced off a five-day low of 1.6594, mirroring euro/dollar moves, while M&A news and euro/sterling sales helped sterling/dollar rally to a four-day high of $1.4540.
Dollar/Canada hit a four-day high of 1.5129, but 25 pips covered its moves in quiet overnight trade.
U.S. traders are likely to toe a cautious line ahead of U.S. January retail sales data and Federal Reserve chairman Alan Greenspan's Senate testimony Tuesday. Boston Fed president Cathy Minehan is due to speak at 0830 ET on a data starved day in the U.S.