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Recovery off Thursday's extended react...>

DOLLAR-YEN
MNI (London)
DOLLAR-YEN: Recovery off Thursday's extended react low of Y110.30, seen as a
reaction to the dovish FOMC Wednesday, extended to Y110.96 in NY before rate
settled around Y110.80 into the close. Consolidation continued around this level
in early Asia as markets awaited a returning Tokyo reaction. Strong opening in
the Nikkei edged rate to Y110.90 but sell interest, which emerged into the Tokyo
fix, countered the early move and pressed rate back to Y110.65, the move lower
aided by reported Japanese investor demand for JGB's. However, dip met demand
interest which allowed rate to recover slowly through the balance of the session
to Y110.84, settling back around Y110.80 into Europe. Large option expiries for
today's NY cut could help to keep rate contained, Y110.40-50 has $1.94bn rolling
off, whilst area between Y110.90-111.05 holds $3.53bn. Also of note, Y111.75
holds $1.98bn.
- US Existing Home Sales at 1400GMT and Feb Budget Statement at 1800GMT provide
data interest into the afternoon. 
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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