Yen holds firm on hopes of rise in repatriation

The yen held firm yesterday on expectations of a pick-up in Japanese repatriation flows before the end of the financial year, while the Australian dollar was boosted by strong Chinese trade data. The US dollar was steady around ¥90, having lost more than 0.3 per cent on Tuesday. Support for the greenback is seen around the ¥89.30 level, which forms the base of the Ichimoku cloud. The euro also drifted sideways around ¥122.40, having lost nearly 0.6 per cent on Tuesday. The Bank of Japan is likely to debate easing its ultra-loose monetary policy again at its board meeting on March 16 and 17. The euro and the pound were subdued on fresh worries about Europe's fiscal health. The euro eased 0.1 per cent against the US dollar, trading around $1.3590. The currency had come under fresh pressure after the Fitch ratings agency said it still has a negative outlook on Portugal's credit rating. Traders said Japanese exporters have sold the euro and the dollar this week, repatriating some of their overseas earnings in the run-up to the fiscal year-end on March 31. Data showed that Chinese exports and imports surged past expectations in February. Commodity-linked currencies rose after the release of the Chinese economic report, with the Australian dollar climbing to a seven-week high against the US dollar. The Australian dollar rose as far as $0.9164, its highest since January 20.