Forex Market Update: U.S. Dollar, Japanese Yen Advance in Asian Trade

The dollar and JPY gained some ground on Friday in Asia with a number of factors contributing to the moves, not least of which included the three bombings in Jakarta that left at least nine people dead and many injured. Safe-haven selling of cross JPY and some buying of Treasuries resulted from the Jakarta bombings though the impact was limited. Some traders were just looking to profit-taking particularly with currencies still near the top of recent ranges, a long weekend approaching in Tokyo and with more key earnings data from Citi, BoA and GE due in NY on Friday. USD-JPY edged down from 93.89 to 93.48 while EUR-USD retreated from late NY highs of 1.4162 to lows of 1.4094. Traders said that activity was limited overall and the market is not convinced Friday’s earnings can push the currencies out of their current summer ranges. NYMEX crude eased back under $62 on profit-taking but some attention is emerging on the sharp slide in grains and soybeans Thursday that may bode poorly for the commodity sector into the weekend. Asian stock markets were mixed with the Nikkei gains limited. Treasury yields slipped slightly lower, with safe haven flows to bonds after the bombings, but with CIT concerns lingering.