The dollar advanced against the yen in Asia Friday as speculators led by U.S. hedge funds took cues from rising Asian stocks to buy the greenback.
The U.S. dollar was trading at 118.70 yen at 2:50 p.m. (0550GMT) Friday, up from 118.37 yen late Thursday in New York. The euro rose to US$1.3614 from US$1.3603.
Yen-selling also got a boost from an article in Japan’s mass circulation Yomiuri newspaper that cooled speculation that the Bank of Japan may raise rates in the next couple of months.
Sharp declines in Asian stocks Thursday raised fears of a repeat of yen’s surge in late February and early March, which was set off by global stock-market plunges that prompted investors to cut risk positions, including yen-carry trades, which involve borrowing the yen to invest in other markets.
