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Most IMM currencies end higher, yen adds to losses

CHICAGO: IMM currency futures ended mostly higher, but a comeback in US stocks from steep declines drove March yen lower and chased nearby euros away from session highs.

"The clear and obvious factor is we had a nice 200-point rally in the Nasdaq. We clearly trade to a certain extent off the direction of US asset markets," said Mike Malpede, senior foreign exchange analyst at Refco Inc.

Trade in March yen was active before the close of pit trade but without any standout deals of large size, the trader said. Stops triggered in dollar/yen pressured the contract through support at $0.009717.

March yen remained weaker throughout pit trade, having breached support near $0.009750 earlier. Concern that the Bank of Japan would intervene again and buy yen to stifle its rise capped the currency's ability to advance early, traders said.

March euros opened firmer and fell into a range in late morning before sharply paring gains near the end of the session. Nearby euros slipped through support at $1.03760 and at $1.03560 to enter into negative territory briefly, then firmed again.

The contract had solid resistance at the pit session high of $1.04400, another IMM currency futures trader said.

Initially the March euro drew support from weakness in stocks, but when they rallied, March euro buyers faded.

"Stocks roared back, (after) the dollar got hammered at first when they were lower yesterday. It's following through -- nobody could fight it," said one IMM currency futures trader.

March Canadian dollar and Mexican peso both firmed slightly in reaction to US stocks' gains, Malpede said, as those currencies often get a lift from a buoyant dollar.

At settlement, March yen was $0.000108 lower at $0.009683, euros were up $0.00170 at $1.03690, Swiss francs rose $0.0011 to $0.6482, sterling was up $0.0048 at $1.6420, Canadian dollar rose $0.0017 to $0.6916, Australian dollars rose $0.0023 to $0.6584 and Mexican pesos rose $0.000425 to $0.102600.-Reuters