Yen Struggles Amid Renewed Surge In Oil Prices

LONDON (AFP) - The yen fell against the dollar and euro following a sharp rise in world oil prices that analysts said could have a negative effect on Japanese economic growth.
The single European currency rose to 1.2297 dollars from 1.2268 late on Wednesday in New York.
The dollar climbed to 110.81 yen from 110.54 on Wednesday.
"The yen is in the spotlight because of the recent spike in the price of oil and the feeling that it might have a negative effect on Japanese economic growth," said Neil Mackinnon, economist at currency manager ECU Group.
"The market is now thinking that the dollar may break out of its recent narrow trading range against the yen," he added.
With Japan a 100-percent net importer of oil, any sharp rises in world crude prices fuels concerns over the health of its economy, analysts said.
Oil futures closed above 48 dollars in New York on Wednesday for the first time in nearly one month in response to a slump in weekly US crude inventories.
The November contract price on the New York Mercantile Exchange surged 1.59 dollars to 48.35 dollars per barrel at the close.
New York's main contract eased 42 cents to 47.93 dollars per barrel in pre-opening electronic trading Thursday.
"The yen continues to be the one currency that fails to strengthen against the dollar with global growth concerns weighing on yen sentiment," Bank of Tokyo-Mitsubishi economist Derek Halpenny said.
"Japanese officials continue to talk up the link between rising oil prices and slowing economic activity," he added.
Elsewhere, the dollar struggled to sustain a recovery against the euro following the latest hike in US interest rates.
US Federal Reserve policymakers Tuesday hiked interest rates by a quarter point to 1.75 percent, in line with expectations.
The Fed pledged also to continue raising rates at a "measured" pace, though some analysts saw this as indicating a slower pace of future rate hikes, causing the dollar to fall against the European single currency.
The euro was changing hands at 1.2297 dollars against 1.2268 late on Wednesday in New York, 136.28 yen (135.67), 0.6837 pounds (0.6837) and 1.5466 Swiss francs (1.5449).
The dollar stood at 110.81 yen (110.54) and 1.2575 Swiss francs (1.2591).
The pound was at 1.7987 dollars (1.7938), 199.32 yen (198.23) and 2.2626 Swiss francs (2.2587).
On the London Bullion Market, the price of an ounce of gold stood at 408.05 dollars against 408.50 dollars late on Wednesday.