Dollar edges down to lower 101 yen in morning on weak U.S. home sales data
TOKYO (Nov 26) The U.S. dollar edged down to the lower 101 yen zone Tuesday morning in Tokyo on data showing contracts to buy previously owned U.S. homes fell for a fifth consecutive month in October. At noon, the dollar fetched 101.43-45 yen compared with 101.63-73 yen in New York and 101.75-77 yen in Tokyo at 5 p.m. Monday . The euro was quoted at $1.3529-3531 and 137.22-26 yen against $1.3512-3522 and 137.36-46 yen in New York and $1.3539-3541 and 137.76-80 yen in Tokyo late Monday afternoon. The dollar moved around the 101.50 yen line in early Tokyo deals, inheriting its weakness in overnight trading on the sluggish U.S. housing index. The gauge of U.S. pending home sales decreased 0.6 percent in October from September, following a 4.6 percent drop in the previous month, the National Association of Realtors said Monday, indicating a cooling housing market in the country.
While the dollar's fall on the U.S. data was limited, "There is no decisive factor (for the dollar) to reach 102 yen ," said Minori Uchida , head of Tokyo global market research at the Bank of Tokyo-Mitsubishi UFJ . "Meanwhile, it seems that the dollar will not fall easily versus the yen as a weak yen trend is in place," said Uchida. However, that might change if U.S. jobs data for November expected to be released next week are weak, he said.