Dollar eases against yen amid US worries

TOKYO: The dollar eased against the yen in Asia on Friday, as weak US economic indicators cast a shadow over the world's biggest economy, dealers said.

The dollar fetched 80.71 yen in Tokyo morning trade, down from 80.88 yen in New York on Thursday. The euro inched up to $1.4487 from $1.4484. The European single currency retreated to 116.92 yen from 117.16.

The greenback came under pressure on Thursday as ratings agency Moody's warned US lawmakers they had mere weeks to reach a deal to raise the national debt limit, or face a possible ratings review and downgrade.

A string of weak US economic data released this week suggested that a key employment report due out later Friday may also disappoint the market.

Official data Thursday showed new US jobless claims fell slightly last week but still remained high above 400,000.

Initial claims for unemployment benefits came to a seasonally adjusted 422,000 in the week ending May 28, a decrease of 6,000 from the prior week, the Labor Department said.

"Poor US economic data released earlier this week stoked worries over the course of the US economy," said Gen Kawabe, dealer at Chuo Mitsui Trust and Banking.

Some short-term speculators were joining Japanese exporters' dollar selling as they bet on the payrolls data being much weaker than expected, a senior dealer at a major Japanese bank told Dow Jones Newswires.

Dollar selling by Japanese exporters is increasing as a faster-than-expected recovery of Japan's supply chains prompt the firms to resume making goods as usual, Citibank Japan chief currency strategist Osamu Takashima told Dow Jones.

Supply chains, particularly those in the automobile industry, were disrupted by the massive March 11 earthquake and tsunami.

But auto giant Toyota said Wednesday its domestic output would return to about 90 percent of pre-quake levels in June thanks to a faster-than-expected recovery of parts supplies. (AFP)