Yen under pressure

TOKYO: The yen faced selling pressure Thursday as investors´ fears over China´s economy began to ease, and as equity markets rebounded following hints the US Federal Reserve may not lift rates next month.
In Tokyo trading, the dollar bought 119.97 yen after crossing the 120 yen mark in earlier trading, and nearly flat against 119.98 yen in New York.
The euro was stronger at 136.14 from 135.72 yen. The 19-nation euro fetched $1.1348, up from $1.1312 in US trade.
Fears over slowing growth in China had sent investors fleeing to the Japanese currency -- a safe haven during times of turmoil -- with the dollar tumbling to 116.18 yen earlier this week, its lowest level since February. Chinese officials have moved to calm markets and took measures, including cutting interest rates, to support the world´s number two economy. "The rebound in US stocks has spurred a reversal of the flight to quality we´ve been seeing," pushing the yen lower, Yasuhiro Kaizaki, vice president for global markets at Sumitomo Mitsui Trust Bank, told Bloomberg News. "The trend for a gradual weakening of the yen is set to continue after a short-term correction." Bank of Japan governor Haruhiko Kuroda said the yen´s sudden rise had been "corrected", as he held out the possibility of more monetary easing measures to reach a 2.0 percent inflation target.