Dollar falls to fresh 7-1/2-month low vs yen

Published: 25 Sep 2009 06:56:36 PST

NEW YORK, Sept 25 - The dollar fell to a fresh 7-1/2-month low beneath 90 yen on Friday as repatriation flows and comments from a former Japanese finance official boosted the Japanese currency.

The dollar fell to 89.78 yen, according to Reuters data, its lowest level since mid-February. The 90-yen level was viewed in the market as a key psychological level and traders said it had been defended by a number of options barriers.

Those broke down earlier, though, after former Ministry of Finance official Eisuke Sakakibara, once known as "Mr. Yen," said authorities would not likely intervene to slow yen gains unless the dollar fell below 85 yen.

Repatriation flows ahead of the Sept. 30 midpoint of Japan's fiscal year also helped the yen. Traders, though, said "buy dollar" orders were layered around 89.20 yen, suggesting the gains could soon run out of steam.