Dollar Slightly Lower in Asia against Yen (AP) (18-01-2008)

TOKYO (AP) -- The dollar eased slightly on Friday in Asia against the yen as worry about a possible U.S. recession persists.

The dollar was trading at 106.96 yen mid-afternoon, fractionally lower from 107.00 yen late Thursday in New York, as traders became bearish following the overnight data, which displayed further signs of a U.S. economic slowdown.

"No one can say for sure right now the extent of the coming U.S. economic slowdown," said Satoshi Tate, senior vice president of foreign exchange at Mizuho Corporate Bank. "As long as this nervousness exists, the dollar will easily resume a downward trend against the yen."

Traders were looking ahead to how share prices will hold up on Wall Street later in the day and eyeing economic indicators to gauge the extent of the slowdown. Foreign exchange managers in Japanese securities companies estimate that another declining session in U.S. markets today might trigger another round of the dollar selling.

The dollar was mixed against other regional currencies. It climbed to 41.040 Philippine pesos from 40.75 the previous session, and fell to 1.4358 Singapore dollars from 1.4378.

Source: AP