NEW YORK (AFX) - The dollar was lower in late trade as weak sentiment towards the greenback erased this morning's gains after the New York Federal Reserve and the European Central Bank intervened on behalf of the Bank of Japan to weaken the yen, dealers said.
"I think in and of itself it isn't going to do a whole lot to turn the market," said David Solin, a currency analyst at Foreign Exchange Analytics.
Solin said the yen selling had sparked up the market earlier and strengthened the dollar, but the impact was short lived.
He noted that Japanese officials have already acknowledged that they are no longer big enough to exert a strong influence on the market, which is why it is now trying to exert pressure in different regions at different times.
"The only interesting thing is that the Bank of Japan is really trying to mix up things... their goal is obviously to not have the yen strengthen so much that it starts to have a negative impact on the exports they are so relaying on, " he said.
"They are really trying to make sure this thing doesn't run away from them," he said.
Solin said the US dollar continues to trade on the weak side, as international capital shifts out of the US equity markets.
"You are seeing a reallocation of these assets. Before they would move on a safe haven basis, on an investment basis as everything was going to the US but now obviously that has shifted."
"I don't think its going into places like Nikkei, or places like that. It is going into short term money markets and for safe haven reasons some of it is flowing back to their domestic countries," Solin said.
New York 4.45 pm London 4.31 pm
Dollar
yen 119.59 down from 119.99
sfr 1.4811 down from 1.4918
Euro
usd 0.9912 up from 0.9867
stg 0.6464 down from 0.6472
yen 118.56 up from 118.29
sfr 1.4684 down from 1.4708
Sterling
usd 1.5327 up from 1.5226
yen 183.34 up from 181.95
sfr 2.2704 down from 2.2722
Australian dollar
usd 0.5634 down from 0.5635
stg 0.3674 down from 0.3698
yen 67.39 down from 67.61
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