FOREX-Dollar slips towards 15-yr low vs yen, Swissie firm

* Intervention caution keeps dollar above 15-yr trough vs yen

* Risk aversion in play after weak US data

By Rika Otsuka

TOKYO, Aug 20 (BestGrowthStock) – The dollar inched down against the
yen on Friday, coming within reach of a 15-year trough hit last
week, after weak U.S. data prompted investors to sell
higher-yielding currencies and stocks on risk aversion.

Data showed on Thursday that new U.S. jobless claims marked a
nine-month high last week, and Mid-Atlantic manufacturing shrank
in August for the first time in more than a year, deepening
worries about the fragile U.S. economic recovery. [ID:nN19350083]

Meanwhile, safe-haven assets, such as government bonds, the
yen and the Swiss francs benefitted.

Against the Japanese currency, the greenback fell to near a
15-year low of 84.72 yen the previous day, when two-year U.S.
Treasury yields hit an all-time low.

The dollar/yen rate has a high correlation with U.S. and
Japanese government bond yield spreads, which are now narrowing.

But the dollar has managed to rise above the psychologically
key 85.00 yen level thanks to trader caution about possible
intervention by Japanese authorities.

“Save-haven demand dominates financial markets, once again,”
said Tsutomu Soma, senior manager of the foreign securities
department at Okasan Securities.

“Everyone thinks the dollar will extend losses against the
yen. But fears of intervention and caution about additional
monetary easing steps in Japan are making players hesitate to
aggressively sell the dollar for now.”

In early Asian trade, the dollar was down 0.2 percent from
late U.S. trade at 85.25 yen (JPY=: ).

Against the Swiss franc, the U.S. currency edged up 0.1
percent to 1.0323 franc (CHF=: ), having struck a seven-month low
of 1.0257 franc on Thursday.

The euro was down 0.1 percent at $1.2807 (EUR=: ) after falling
as low as $1.2772 on trading platform EBS on Thursday. Support
comes in at the 100-day moving average around $1.2770.

The euro fell (Read more about the trembling euro. ) 0.3 percent to 109.16 yen (EURJPY=R: ), with
support at 109.07 yen, a seven-week low hit earlier this week,
and 109.00 yen. Falling below 109.00 yen will open the way for a
slide towards an 8-