The yen extended its fall against major currencies in Asian trade Thursday, as an improving outlook for the US economy and receding concerns over the European financial crisis boosted risk appetite.
The dollar rose to 84.12 yen in Tokyo against 83.68 yen late Wednesday in New York, while the euro also advanced to 109.59 yen compared with 109.08 yen.
Stop-loss buying orders may be hovering above the 84.00 mark, which could push up the dollar even higher against the yen, Junichi Ishikawa, forex analyst at IG Markets Securities, told Dow Jones Newswires.
The euro bought $1.3029, compared with $1.3032 in New York.
“It's the strong dollar that's pulling the euro down,” Masashi Murata, senior currency strategist at investment bank Brown Brothers Harriman in Tokyo, said.
He added that the euro faces some selling pressure as it lacks positive cues to push it up.
The dollar may climb as high as 84.50 yen during the session, backed by rising US Treasury yields and an improving outlook for the world's largest economy, Murata said.
But its rise may gradually slow down as the market awaits a string of US indicators, he said.
Hints from the Federal Reserve that it sees some improvement in the economy, and the banking sector's collective passing of a tough stress test encouraged the push into the dollar and US stocks.
US bond prices sank, sending yields to nearly five-month highs. Prices and yields move in opposite directions.
The dollar was mostly higher against other Asian currencies. It firmed to Sg$1.2670 in Tokyo afternoon trade from Sg$1.2612
Wednesday, to 43.01 Philippine pesos from 42.71 pesos, and to 1,128.10 South Korean won from 1,124.80 won.
It also rose to Tw$29.54 from Tw$29.51 and to 30.83 Thai baht 30.69 baht, but it slipped to 9,165.00 Indonesian rupiah from 9,190.750 rupiah. - Sapa-AFP