LONDON: The dollar eased against the yen in Asia trade Wednesday, getting a boost as Japan’s main stock market trimmed its earlier gains, action that limited selling of the Japanese currency.
Meanwhile, the Australian dollar climbed on rising inflation.
The dollar USDJPY, -0.18% was at ¥119.54, compared with ¥119.65 late Tuesday in New York.
The greenback weakened slightly against the Japanese currency, with a bout of yen buying earlier in the morning session after Japan reported its first monthly trade surplus in nearly three years.
The monthly trade balance came to a surplus of ¥229.3 billion, as falling oil prices reduced the value of imports while a weaker yen and the U.S. economic recovery lifted outbound shipments. That was much bigger than the market consensus for a surplus of ¥47.9 billion.
On the other hand, the strength of the Nikkei Stock Average NIK, +1.13% above 20,000-mark also brightened sentiment and provided a catalyst to push up dollar against the yen. But as the benchmark retreated, the dollar fell as investors sought out the perceived safety of the Japanese currency.
The Nikkei rose 1.0% to 20108.12 midday after registering fresh 15-year high.
