Source AP ©

Dollar drops sharply vs yen in Asia on worries over U.S. housing loans

The dollar fell sharply against the yen in Asian trading Wednesday as non-Japanese investors sold the U.S. currency to lock in profits amid expectations that subprime mortgage woes will continue to weigh on U.S. shares.

The U.S. dollar was trading at 117.94 yen Wednesday afternoon, down from 119.30 yen late Tuesday in New York.

"Concerns over U.S. stock falls triggered by a credit crunch will likely remain deeply rooted in the financial markets," said Osao Izuka, head of foreign-exchange trading at Sumitomo Trust & Banking. "Under such circumstances, it's difficult (for investors) to buy the dollar."

Wall Street fell Tuesday after American Home Mortgage Investment Corp. said it is facing serious liquidity issues amid a flood of margin calls from lenders and has hired advisers to evaluate its options, including the liquidation of its assets.

The news pushed the Dow Jones industrial average down 1.1 percent, and that in turn sent Japanese and Asian shares tumbling. The Nikkei 225 index fell 2.2 percent to its lowest in four-and-a-half months.

In other trading, the euro sank to US$1.3648 from US$1.3703.

Against other Asian currencies, the dollar was higher. It rose 0.81 percent against Indonesian rupiah to 9,300 and 0.79 percent against Indian rupee to 40.502.

Comments
Brigitte Bardot accuses Hollywood actresses of hypocrisy
Sheep disrupt the work of US missile defences in Romania
Sheep disrupt the work of US missile defences in Romania
Russian Guard to see enemies behind walls
Russia starts shipping S-400 air defence systems to China
German experts name Russia's most dangerous weapon
Interview with Andre Vltchek for Farhikhtegan newspaper in Iran
Russian army receives giant modernised nuclear mortars
Russia's new torpedo carrying 100-megaton nuclear warhead nullifies USA's Prompt Global Strike
A Europe without roots now also demolishes churches
US diplomat makes fool of himself in the Netherlands
US diplomat makes fool of himself in the Netherlands
US diplomat makes fool of himself in the Netherlands
Three scenarios of new super sanctions against Russia published
Three scenarios of new super sanctions against Russia published
Three scenarios of new super sanctions against Russia published
Putin's power shakes US Congress
Brigitte Bardot accuses Hollywood actresses of hypocrisy
Russia starts shipping S-400 air defence systems to China
Russia starts shipping S-400 air defence systems to China
A Europe without roots now also demolishes churches