LONDON: The U.S. dollar rose to the upper 124 yen range Tuesday morning in Tokyo following the decision by the People’s Bank of China to devalue the yuan.
At noon, the dollar fetched 124.72-73 yen compared with 124.59-69 yen in New York and 124.50-52 yen in Tokyo at 5 p.m. Monday.
The euro was quoted at $1.0974-0975 and 136.87-88 yen against $1.1013-1023 and 137.28-38 yen in New York and $1.0959-0960 and 136.44-48 yen in Tokyo late Monday afternoon.
The U.S. currency briefly rose to 124.89 yen from just above the mid-124 yen level after the Chinese central bank said it had changed the way it calculates the yuan’s daily midpoint against the dollar, allowing the Chinese unit to fall to its lowest level in almost three years.Once the U.S. currency’s rise on the PBOC move subsides, however, the dollar-yen pair may continue to be confined to a boxed range this week in Tokyo trading amid the summer holiday season, said Yuzo Sakai, manager of foreign exchange business promotion at Tokyo Forex & Ueda Harlow.
“Currency traders will look to U.S. economic data, including indicators on retail sales, due out on Wednesday for trading cues,” Sakai said.
The euro fell back slightly against the dollar after gaining ground on optimism toward Greece sealing a deal for a third bailout with its creditors.
