The Euro and Yen Are Little Changed, As Foreign-Exchange Market Calms
NEW YORK -- After an initial flurry of activity in Asian trading, the foreign-exchange market lost momentum as it assessed the implications of the pronounced euro weakness and unexpected yen strength Wednesday.</br></br>In overnight trading, the dollar followed through on trends established late yesterday in New York and slipped under 119 yen for the first time since early March. Even more aggressive selling pulled the euro down against the yen, to another new 2001 low of just above 101 yen.</br></br>At that point the market backed off. "There were some good bids [for the euro against the yen] around 101 yen, and with Europe being closed people didn't want to stay too short," said John Cholakis, foreign-exchange dealer at Dai-Ichi Kangyo Bank in New York.</br></br>With little new data in the U.S. to guide investors and limited liquidity because of the Ascension Day holiday in much of Europe, trading slipped into narrow ranges as traders moved to the sidelines ahead of the long holiday weekend in the U.S. and the United Kingdom.</br></br>In late New York trading, the euro was at 85.72 cents, up from 85.45 cents in London, and slightly lower than 85.65 cents late Wednesday. Against the yen, the euro was at 102.48 yen, after bouncing off its overnight low of 101.04 yen. The dollar was at 119.89 yen, little changed from 119.78 yen in London and flat with 119.89 yen in late New York trade Wednesday. The dollar was at 1.7781 Swiss francs, compared with 1.7789 francs Wednesday, while sterling was at $1.4089, down from $1.4191.