Dollar firms in Japan

the year’s first half before an economic pick-up towards year-end, analysts said.
The greenback stood at 82,23 yen, gaining from 81,88 yen Friday afternoon in Tokyo. The euro bought US$1,4579 and 119,89 yen, compared with US$1,4571 and 119,30 yen Friday. The US and European markets were closed on Friday for the Easter holidays.
Investors turned cautious about the yen after Bank of Japan governor Masaaki Shirakawa joined a number of private economists in saying the world’s number three economy would likely contract in the first half.
Stalled production due to damage from the 9,0-magnitude earthquake and tsunami on March 11 was seen pulling down the overall economy, he said in a media interview last week.
The remark was followed by a separate news report Monday that the central bank was preparing to downgrade its economic growth outlook for the year to March 2012 from 1,6 percent to around 0,8 percent.
“With such remarks, the BoJ might have tried to lay the foundation for a possible downward revision in its growth forecast,” said Hideki Hayashi, global economist at Mizuho Securities.
“This should also support the dollar/yen” amid a bearish view for the US unit due to fading expectations of an early credit tightening by the US Federal Reserve, he added.
Daiwa SB Investments senior fund manager Kenichiro Ikezawa said: “This is Shirakawa confirming that the BoJ’s easy policy will remain for a while.” – AFP.