26 May 2005, 10:03  Dollar rises against yen in Asian trading

The dollar rose against the yen in Thursday morning trading in Asia as the market awaited the release later in the day of U.S. economic growth data that may give more reasons to buy the American currency. The U.S. dollar was trading at 107.86 yen at late morning in Tokyo, up 0.41 yen from late Wednesday and above the 107.69 yen it bought in New York later that day. However, the euro rose to US$1.2600 from US$1.2576 and to 135.88 yen from 135.14 yen. Numbers that support confidence in the U.S. economy are positive for the dollar, which has regained its earlier losses on optimism about U.S. growth that offsets concerns about the huge U.S. trade and budget deficits. Overnight in New York, the dollar was little changed against the yen after volatile trading in which economic data and U.S. Treasury yields cast a mixed influence on currencies. Disappointing data from Germany had initially sent the dollar higher, but the rally was short-lived following the release of the U.S. Commerce Department's April durable goods data when investors realized that the better-than-expected results came mainly from the transportation sector.

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