Yen Edges Up Against Majors

Yen Edges Up Against Majors

The Japanese yen that fell against other major opponents earlier reversed direction and gained in later Asian deals on Friday.

The yen was under pressure in early deals amid warning that the Japanese authorities may intervene in the currency market to weaken the currency.

Japan Finance Minister Koriki Jojima raised worries about the yen's steep rise at the G-7 meeting on Thursday and urged support of other countries in stabilizing exchange rates.

Separately, Japan's economy minister, Seiji Maehara, said yesterday that Japan may intervene on its own in FX market without U.S. consent.

The minister also said today that he will discuss about the global economic conditions, including appreciation of the yen, in a meeting with Federal Reserve Chairman Ben Bernanke and European Central Bank President Mario Draghi.

An index measuring tertiary industry activity in Japan was up a seasonally adjusted 0.4 percent on month in August, the Ministry of Economy, Trade and Industry said on Friday, standing at 99.1.

That matched forecasts following the 0.8 percent contraction in July.

A separate report showed that an index measuring the prices of domestic corporate goods was up 0.3 percent on month in September, standing at 100.5.

That beat forecasts for an increase of 0.2 percent, which matched the August reading following a downward revision.

After falling to 78.55 against the U.S. dollar and 126.04 against the pound in early deals, the yen reversed. The yen is now trading at yesterday's close of 78.35 against the greenback. The Japanese unit is now trading at 125.56 against the pound, compared to yesterday's close of 125.72.

Against the franc and the euro, the yen that bounced back from early lows of 84.03 and 101.62 rose to 83.77 and 101.26, respectively. At Thursday's close, the yen ended deals at 83.82 against the franc and 101.29 against the euro.

The yen gained to 80.46 against the aussie and 80.06 against the loonie, compared to early lows of 80.78 and 80.31, respectively. The aussie-yen and the loonie-yen pairs closed yesterday's deals at 80.44 and 80.08, respectively.

Against the NZ dollar, the yen is worth 64.19, up from a 3-day low of 64.42. The pair was worth 64.07 at yesterday's close.

In the European session, Eurozone industrial production for August is due.

From the U.S., PPI for September and preliminary report of Reuters/University of Michigan's consumer sentiment index for October are slated for release in the New York morning session.