* Dollar rebounds from 5-mth low vs yen
* Sudden hope on U.S. corporate earnings boosts sentiment
* Market still doubtful about global economic health
(Recasts, updates prices, adds comment, adds detail)
By Steven C. Johnson
NEW YORK, July 13 (Reuters) - The dollar edged up against
the yen on Monday, rebounding from a five-month low, after
positive comments from a normally bearish bank analyst boosted
hopes for the sector's earnings and lifted stocks.
The euro rose broadly after European Central Bank President
Jean-Claude Trichet sounded a bit more upbeat about euro-zone
growth for the rest of 2009.
The moves reversed earlier gains for the yen and dollar,
which tend to rise when investors grow anxious and sell stocks,
commodities and other risky assets that are often financed with
cheaply-borrowed dollars and yen.
"We've had quite a turnaround here as people have received
some reassurance on earnings, though there are still hurdles
ahead," said Camilla Sutton, senior currency strategist at
Scotia Capital in Toronto.
The U.S. dollar hit a five-month trough of 91.73 yen on
electronic trading platform EBS before recovering to trade at
92.73 yen <JPY=>, up about 0.2 percent from late Friday.
Wall Street's rise, following an analyst upgrade of Goldman
Sachs Group and positive comments about Banc of America Corp,
helped dull concern about the Japanese ruling party's loss in a
Tokyo election Sunday, which raised speculation the party may
lose national elections in August. [] and
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The euro rose 0.4 percent to 129.50 yen <EURJPY=> and 0.3
percent to $1.3975 <EUR=>, boosted partly by higher stocks.
Sterling fell 0.1 percent to $1.6180 <GBP=D4> but was above
its $1.6034 session low, while commodity-linked, high-yield
currencies such as the Australian dollar rebounded from an
eight-week low against the yen touched earlier <AUDJPY=R>.
In recent weeks, disappointing U.S. employment and consumer
sentiment data has soured the market mood, some traders said.
If earnings do disappoint, risk aversion could return.
"Everybody is more cautious -- on the economy and on
corporate earnings -- and there's a more pessimistic view for
the third and fourth quarters," said Hidetoshi Yanagihara,
senior currency trader at Mizuho Corporate Bank in New York. He
said attendant risk aversion should continue pushing the dollar
toward 90 yen.
Goldman Sachs Group <GS.N>, JPMorgan Chase & Co <JPM.N> and
Citigroup Inc <C.N> are all set to report earnings this week.
"This week there is heavy focus on the U.S. earnings
season, and investors will want to see that any recovery for
major companies is revenue-based and not cost-cutting based,"
said James Hughes, a CMC Markets analyst in London.
U.S. Treasury Secretary Timothy Geithner said Monday that a
global economic recovery still faces risks, but added there was
a "good chance" the U.S. and other leading economies would
begin growing over the next two quarters. []
Minutes from the last Federal Reserve policy meeting and a
Bank of Japan meeting, due for release later in the week, will
be closely watched.
(Additional reporting by Jessica Mortimer in London; Editing
by Padraic Cassidy)
