LONDON (AFP) — The dollar fell Friday against the yen but rose against the euro as investors sought safe-haven currencies and awaited US consumer confidence data and the latest company results.
In afternoon London trade, the European single currency fell to 1.3926 dollars from 1.4024 dollars in New York late on Thursday.
The dollar slid to 92.44 yen from 92.96 yen late Thursday.
Many investors regard the dollar and yen as safe investments in times of economic uncertainty.
The Japanese unit resumed its rally as investors braced for potentially disappointing US consumer data and earnings reports, dealers said.
"The clear winner has been the yen," said economist Derek Halpenny at The Bank of Tokyo-Mitsubishi UFJ in London.
"It is the only major currency that has managed to advance against the dollar over the period since the equity markets in the US peaked on June 12.
"Until sentiment shifts in the financial markets, the likelihood is that yen appreciation could persist."
Later Friday, the foreign exchange market will digest US external trade data and University of Michigan consumer sentiment surveys.
"The markets will also be watching the progression of the second-quarter US earnings season, and US Treasury Secretary Geithner, who will be testifying before the House Financial Services Committee on the derivatives markets this afternoon," added Lloyds TSB Corporate Markets analysts in a note.
Meanwhile the Group of Eight (G8) meeting in Italy was drawing to a close with little impact on foreign exchange market sentiment.
Elsewhere, Japanese Economic and Fiscal Policy Minister Yoshimasa Hayashi said that the yen's rise posed a threat to Japanese exporters.
"For this reason, we need to keep monitoring moves in the stock and currency markets closely," he told reporters.
Markets are watching Japanese officials' comments carefully for any signs that Tokyo may be considering intervening in the market to curb the yen's rise, although analysts say it is unlikely to make a move at current levels.
Traders were also digesting data showing that Japanese wholesale prices dropped by a record 6.6 percent in June from the previous year, deepening concerns that the economy is heading into another bout of deflation.
In London trade on Friday, the euro was changing hands at 1.3926 dollars against 1.4024 dollars late on Thursday, 128.71 yen (130.42), 0.8587 pounds (0.8580) and 1.5166 Swiss francs (1.5120).
The dollar stood at 92.44 yen (92.96) and 1.0895 Swiss francs (1.0779).
The pound was at 1.6212 dollars (1.6341).
On the London Bullion Market, the price of gold fell to 910 dollars an ounce from 911.75 dollars an ounce late on Thursday.
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