21 February 2005, 09:35  Dollar Rises Against Yen Following Wholesale Prices Boost, Falls to Euro in Early Asian Trading

The dollar was up against the Japanese yen early Monday in Asia following its boost from stronger-than-expected U.S. wholesale prices in the previous session.
The greenback was down, however, against the euro in early Asian trading. The 12-nation European currency was up at $1.3071 from $1.3065 late Friday.
The dollar was trading at 105.66 yen on the Tokyo foreign exchange market at 9 a.m. Monday, up 0.40 yen from late Friday. It also gained slightly against the Australian dollar but was flat against the New Zealand dollar.
On Friday, the U.S. Labor Department said its producer price index rose by 0.3 percent in January -- a development that could put the Federal Reserve on a path toward steeper interest-rate increases. Higher interest rates make U.S. bonds more attractive to investors.
Against the yen, the euro rose to 138.12 yen from 137.51 yen, after hitting a six-week high of 138.15 yen on Friday.
The dollar has rebounded from a steep fall late last year, but worries over the U.S. trade and budget deficits have prevented it from making a stronger comeback.

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