Dollar rises against yen in Asia

The dollar was at 78.38 yen in Tokyo afternoon trade against 78.33 yen in New York late Thursday.

The European common currency was changing hands at $1.2930 against $1.2926, while it firmed to 101.32 yen from 101.25 yen.

Softbank is eyeing a multi-billion-dollar buy-in to the US telecom market including the takeover of Sprint Nextel, in what could be one of Japan Inc.'s biggest-ever overseas acquisition, reports said Friday.

Sprint Nextel said it was talking to Softbank on a possible takeover by Japan's third largest mobile carrier, while Softbank also confirmed on talks with the US firm but said no decisions had been made yet.

"The way of financing varies," Daisuke Karakama, market economist at Mizuho Corporate Bank, told Dow Jones Newswires. "The firm may have some dollar holdings. Still, there should be dollar-buying to a certain extent."

Banks, asked by the telecom firm, will likely purchase dollars over a certain period of time, he added.

The dollar was also supported against the yen after Japanese finance minister Koriki Jojima expressed at the Group of Seven meeting in Tokyo concerns about the high levels of the currency, dealers said.

The direction of the single currency may well depend on the stock market's movement, said a senior dealer at a major Japanese bank, as risk appetite rose despite worries over Spain's path forward after another S&P ratings downgrade.

The Standard & Poor's downgrade of Spain seemed to have had little impact, despite the risk of rendering the country's debt burden unsustainable.

"You don't have to be too pessimistic about the euro," he said.

While the downgrade could hit Madrid's borrowing costs, the European Central Bank's promise to buy up the debt of troubled economies if they agree to accept certain conditions has provided some support.

The dollar was lower against other Asia-Pacific currencies.

It fell to 9,604 Indonesian rupiah from 9,627 rupiah on Thursday, to 41.51 Philippine pesos from 41.58 pesos, to 30.65 Thai baht from 30.74 baht and to 1,110.55 South Korean won from 1,115.15 won.

It also eased to Sg$1.2214 from Sg$1.2293, to Tw$29.26 from Tw$29.29 and to 52.82 Indian rupees from 53.12 rupees.

The Australian dollar bought $1.0276 from $1.0277 a day earlier, while China's yuan changed hands at 12.50 yen against 12.39 yen.