CURRENCIES: Dollar Edges Down Vs. Yen After Japan Data

The dollar edged down against the yen in the Asian session Wednesday after better-than-expected Japanese machinery orders data, but was nearly flat against other major rivals.

The dollar bought 89.75 yen, down from 89.81 yen in late North American trading on Tuesday.

Japanese government data released early in the session showed the country's private-sector machinery orders -- viewed as a key leading indicator for corporate capital outlays -- rose for a second straight month in September. Core machinery orders rose a seasonally adjusted 10.5%, far more than the 3.2% gain predicted by economists surveyed by Dow Jones Newswires and the Nikkei.

The euro was buying $1.4975, nearly flat from $1.4976 late Tuesday, and the British pound bought $1.6733, just a few ticks above $1.6731 late Tuesday.

U.S. Treasury Secretary Timothy Geithner, visiting Tokyo, said Wednesday he deeply believes a strong dollar is "very important" for the U.S.

China released a mixed bag of economic data for October on Wednesday, and the disappointing details helped support the greenback. Robust domestic consumption continued to drive the nation's economic recovery despite an anemic demand for its exports.

Data released separately by the People's Bank of China showed banks' new loans dropped in October to their lowest monthly level this year, suggesting that authorities were scaling back a key source of stimulus for the economy.

"The barrage of Chinese data caused a minor blip, with some disappointment over China's new loan growth...and weaker export and import growth," said Sue Trinh, senior currency strategist at RBC Capital Markets in emailed comments.

On Tuesday, the dollar bounced off a 15-month low and gained back some ground against major currencies, as concerns over the U.K.'s sovereign rating prompted some demand for the safe haven of the U.S. unit.

A series of speeches by senior U.S. Federal Reserve officials showed policymakers are still more worried about recovery prospects than inflation risks, and think the central bank needs to keep interest rates near zero because the outlook for the U.S. labor market remains grim.