Japanese yen heads higher; euro tops US$1.14 level

[NEW YORK] The yen edged higher on Monday, again pummeling Tokyo stocks, while the euro held up over the US$1.14 threshold for the first time in six months.

The yen pushed to 107.94 per dollar, its highest level in 18 months, as the markets continue to trade on the Federal Reserve's dovish interest rate stance.

Japanese authorities have warned since last week against the yen's advance, with Finance Minister Taro Aso saying rapid gains were undesirable, although Prime Minister Shinzo Abe pledged to avoid "arbitrary" intervention.

"Players are turning pessimistic as the stock market is weak, and the yen's strengthening will likely continue for a while," said Marito Ueda, senior dealer at FX Prime.

Mr Ueda said the government can do little more than try to talk the yen down, particularly as it prepares to host a Group of Seven summit where such a controversial move would prove a major distraction.

"Real intervention is impossible ahead of the G-7 summit in May" in Japan, Mr Ueda said.

AFP