Dollar flat against yenin Asia after G7 statement

The Associated Press , Tokyo | Mon, 04/14/2008 6:53 PM | Business

The dollar was little changed against the yen in Asia on Monday as the Group of Seven's statement promising vigilance over rates put the brakes on traders' dollar-selling despite lingering bearish sentiment.

The dollar stood at 100.91 yen,little changed from 100.87 yen in New York Friday.

Highlighting concerns about the greenback's rapid decline in recent weeks, the G7 communique from last Friday's meeting of financial heads in Washington changed the rhetoric on exchange
rates for the first time in four years.

"There have been at time sharp fluctuations in major currencies, and we are concerned about their possible implications for economic and financial stability," the G7 said.

Tokyo dealers said that suggests there won't be coordinated intervention soon to stem the dollar's fall, but it was enough to make players reluctant to dump the U.S. unit.

"Without the new statement, the dollar would have been hovering below 100 yen by now," said Yuji Saito, head of foreign exchange at Societe Generale. "Players' sentiment toward the dollar is bearish and Japanese stock prices are falling, which usually leads to a weaker U.S. currency."

Market participants in Japan will wait to see how European and U.S. players react to the statement later in the day for clues on where the currency market is headed.

The euro, meanwhile, stood at $1.5705 from $1.5826 in New York last week and 158.49 yen from 159.65 yen.

The dollar was generally higher against other Asian currencies. It was up 0.21 percent at 1.3590 Singapore dollar, and gained 58 percent to 41.720 Philippine peso.(**)

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