Dollar extends gains in Asia

The dollar extended its gains on Tuesday, recovering from a sharp fall last week fueled by Washington's announcement that it had authorized air strikes in Iraq. The dollar strengthened to 102.31 yen in Tokyo midday trade, against 102.21 yen in New York late Monday.

The euro was quoted at $1.3372 and 136.86 yen, from $1.3382 and 136.79 yen in New York as concerns persisted over a possible Russian military incursion into eastern Ukraine. As the geopolitical factors have been factored in, the market continues to see a retreat of risk-off moves, which supported dollar-buying sentiment against the yen, said the analyst of the Bank of Tokyo-Mitsubishi UFJ which is Yasuaki Amatatsu.

Investors tend to buy the yen in times of uncertainty and turmoil. The dollar rallied Monday after plunging last week on President Obama's announcement that he had authorized air strikes on Iraq along with humanitarian supply drops to prevent a "genocide" by Islamist extremists.

The prospect for a steady recovery of the US economy is also behind dollar-buying sentiment. Dealers are now moving their focus to an annual economics conference in Jackson Hole later this month to be attended by Federal Reserve Chair Janet Yellen.

Source: yahoo.com