Dollar eases in Asia but expected to resume rise

TOKYO: The dollar eased in Asia on Monday after a Japanese minister said the recent correction against the yen was nearly over, but analysts said the greenback would soon resume its climb.

The dollar was changing hands at 102.84 yen in Tokyo morning trade, down from 103.19 yen in New York late Friday but still up from the lower 102-yen range seen before the Tokyo market closed on Friday.

The euro was quoted at $1.2825 and 131.90 yen against $1.2834 and 132.44 yen in US trade.

The dollar was supported at 102.60 yen and could test 104 yen in the short-term after breaching 103 yen late Friday, said Citibank Japan chief forex strategist Osamu Takashima.

The dollar dipped early Monday after Economy, Trade and Industry Minister Akira Amari on Sunday suggested the Japanese government may not want the yen to weaken further.

Responding to a question on how far the unit should fall, Amari said: "It's being said that the correction of the strong yen is largely completed. If the yen keeps on weakening a lot more, it will have a negative impact on peoples' lives (by pushing up import costs)."
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