September 16, 2009
TOKYO (AFP) - The euro held firm close to a nine-month high against the dollar in Asia on Wednesday as investors snapped up riskier assets, reflecting mounting hopes for a global economic recovery.
The euro stood at 1.4667 dollars in Tokyo midday trade, close to Tuesday's peak of 1.4686, which was the highest since December 2008.
The dollar edged down to 90.97 yen, from 91.08 yen in New York late Tuesday. The euro was steady at 133.49 yen against 133.50.
The market was in dollar-selling mode, with a jump in US retail sales and steady commodity markets reducing the appeal of the safe-haven currency, said Masato Otsubo, currency analyst at Resona Bank.
US stocks hit their highest level of the year on Tuesday -- the first anniversary of the collapse of Lehman Brothers. Federal Reserve chairman Ben Bernanke said the US recession was "very likely over".
"Cash had shifted from risk assets to the dollar after the Lehman shock but fund flows are now being reversed," Otsubo said.
Traders were eyeing a historic change of power in Japan as a centre-left government replaces a conservative party that has ruled almost continuously for more than half a century.
Hirohisa Fujii, a 77-year-old former bureaucrat who has railed against wasteful public spending, said he had accepted the job of Japanese finance minister under incoming premier Yukio Hatoyama.
Traders are watching carefully for Fujii's remarks on the yen, in particular how concerned he is about the currency's recent strength.
Fujii has said that in principle the government should refrain from intervening in the currency market to curb the strength of the yen and protect the country's exporters.
"The market consensus is that the DPJ will tolerate a strong yen," Otsubo said.
The euro found some support after Germany's closely watched ZEW survey, which measures the mood of financial market players, rose in September to 57.7 -- its highest level since April 2006 -- from 56.1 in August.
