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CURRENCIES: Dollar Falls To 14-year Low Against Yen



By Lisa Twaronite

The dollar was mostly down but off broad lows in late Asian trading Friday, after notching a 14-year low against its Japanese counterpart, as investors expect the U.S. Federal Reserve to keep interest rates at current low levels sold the U.S. unit.

The dollar was buying 86.71 yen after earlier falling as low as 86.28 yen, according to FactSet Research data. It was at 87.37 yen in late North American trading Wednesday.

The euro traded at $1.5103, up from $1.5137 late Wednesday.

The dollar index (DXY), which measures the greenback against a trade-weighted basket of six major currencies, fell as low as 74.351. It earlier fell as low as 74.227 -- its lowest level since August 2008. The index was at 74.252 late Wednesday.

Japan Finance Minister Hirohisa Fujii reportedly told journalists Thursdays that it's "time to watch the foreign-exchange market carefully," in a sign that Japan may strengthen its monitoring of currency markets. But traders say the remark isn't a sign policy makers were preparing to immediately intervene.

Japan hasn't intervened in currency markets in more than five years, after it sold a massive 35 trillion yen in the 15 months through March 2004.

A weaker dollar makes goods imported into the U.S. more expensive and therefore less competitive.

The Philippines, Thailand and Singapore all reportedly intervened directly in foreign exchange markets Thursday, in an apparent effort to keep the plunging buck from undermining their export-focused economies.


  (END) Dow Jones Newswires
  11-26-090142ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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