Risk aversion hits euro amid Egypt turmoil
TOKYO: Risk averse investors kept away from the euro in Asia on Monday as deepening turmoil in Egypt spurred demand for safe-haven currencies, dealers said.
The unit stayed at $1.3610 in Tokyo afternoon trade after slumping to a low of $1.3569 in early trade, compared with $1.3609 in New York late Friday, when it plunged due to escalating tension in Egypt.
The single European currency dropped to 111.58 yen from 111.72 yen.
The dollar fetched 82.05 yen, flat from 82.09 yen in New York Friday.
Risk-aversion rose as chaotic anti-government protests aimed at ousting the regime in Egypt continued to escalate, dealers said.
"Investors sold the euro to close their positions while safe-haven currencies such as the Swiss franc temporarily attracted purchases," said Gen Kawabe, dealer at Chuo Mitsui Trust and Banking.
"Investors are eyeing risks that may grow as the Middle Eastern situation becomes more complicated," Kawabe said. "The market is likely to show volatile moves, swayed by levels of such risk sentiment," Kawabe said.
Kenichiro Ikezawa, fund manager at Daiwa SB Investments, told Dow Jones Newswires that risk sentiment may continue to deteriorate for days to come if unrest spreads to other Middle Eastern countries.
Japanese exporters' regular month-end purchases of the yen may accelerate the downward pressure on the euro versus the Japanese unit, Motonari Ogawa, senior dealer at Barclays Bank, said.
The market showed little reaction to positive Japanese production figures released early in the morning.
!A government report showed Japan's industrial output jumped 3.1 percent in December from the previous month, on the back of increased production of vehicles and electronics parts.
The figure compared with forecasts of a 2.9 percent rise, according to a survey conducted by Dow Jones and Nikkei.
The greenback was broadly higher against regional Asian currencies, rising to Sg$1.2859 from Sg$1.2806 on Friday, to 31.14 Thai baht from 31.06, and to 1,122.20 Korean won compared with 1,114.10.
It also firmed to 9,070.00 Indonesian rupiah from 9,025.00 and to 44.35 Philippine pesos from 44.08.
It was nearly unchanged at Tw$29.00 compared with Tw$29.01.
The unit stayed at $1.3610 in Tokyo afternoon trade after slumping to a low of $1.3569 in early trade, compared with $1.3609 in New York late Friday, when it plunged due to escalating tension in Egypt.
The single European currency dropped to 111.58 yen from 111.72 yen.
The dollar fetched 82.05 yen, flat from 82.09 yen in New York Friday.
Risk-aversion rose as chaotic anti-government protests aimed at ousting the regime in Egypt continued to escalate, dealers said.
"Investors sold the euro to close their positions while safe-haven currencies such as the Swiss franc temporarily attracted purchases," said Gen Kawabe, dealer at Chuo Mitsui Trust and Banking.
"Investors are eyeing risks that may grow as the Middle Eastern situation becomes more complicated," Kawabe said. "The market is likely to show volatile moves, swayed by levels of such risk sentiment," Kawabe said.
Kenichiro Ikezawa, fund manager at Daiwa SB Investments, told Dow Jones Newswires that risk sentiment may continue to deteriorate for days to come if unrest spreads to other Middle Eastern countries.
Japanese exporters' regular month-end purchases of the yen may accelerate the downward pressure on the euro versus the Japanese unit, Motonari Ogawa, senior dealer at Barclays Bank, said.
The market showed little reaction to positive Japanese production figures released early in the morning.
!
The figure compared with forecasts of a 2.9 percent rise, according to a survey conducted by Dow Jones and Nikkei.
The greenback was broadly higher against regional Asian currencies, rising to Sg$1.2859 from Sg$1.2806 on Friday, to 31.14 Thai baht from 31.06, and to 1,122.20 Korean won compared with 1,114.10.
It also firmed to 9,070.00 Indonesian rupiah from 9,025.00 and to 44.35 Philippine pesos from 44.08.
It was nearly unchanged at Tw$29.00 compared with Tw$29.01.
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