Dollar close to one-month highs in Asian trade
Friday, 1 August 2008
TOKYO, July 31 (AFP): The dollar was close to one-month highs against the euro and yen in Asian trade today amid concerns that a US economic slowdown is hitting Europe and Asia, dealers said.
The dollar was at 107.96 yen in Tokyo afternoon trade compared with 108.12 in New York on Wednesday. The euro firmed to 1.5580 dollars from 1.5575 but slipped to 168.20 yen from 168.39. "The market is optimistic that the US economy, while still weak, is holding up better than economies elsewhere," said Kenichi Yumoto, vice head of forex at Societe Generale, adding that investors were generally "dollar bullish."
The greenback eased slightly eased ahead of US second- quarter economic growth figures due later in the day and Friday's key monthly jobs report.
"The dollar fell slightly below the 108 line because it was not on stable ground at the higher level," said Saburo Matsumoto, chief forex strategist at Sumitomo Trust Bank.
Currency dealers in the past several weeks have detected signs of an improvement in US economic momentum.
Although the employment report is expected to show a loss of jobs, "there is a growing view that Europe and Oceania are doing worse" amid the fallout from the US subprime loan crisis, said Yumoto at Societe Generale.
Wall Street analysts expect the US economy to have picked up pace after 1.0 per cent growth in the first quarter.
But they expect a loss of 75,000 jobs in July and the unemployment rate to tick up to 5.6 per cent.
A survey by human resources management group ADP showed the US private sector created 9,000 jobs in July, defying market expectations for losses.
Markets will also be looking at the Institute of Supply Management survey on manufacturing activity, which is also due out on Friday.
There were growing concerns about the health of the European economies after business and consumer confidence in the 15-member eurozone fell in July to its lowest level since March 2003.
Against Asian currencies, the dollar climbed to 44.22 Philippine pesos from 44.16 on Wednesday, to 33.53 Thai baht from 33.49, to 30.64 Taiwan dollars from 30.50, and to 1.3688 Singapore dollars from 1.3682.
It fell to 9,107.50 Indonesian rupiah from 9,115.50 but was flat at 1,010.30 South Korean won.
The dollar was at 107.96 yen in Tokyo afternoon trade compared with 108.12 in New York on Wednesday. The euro firmed to 1.5580 dollars from 1.5575 but slipped to 168.20 yen from 168.39. "The market is optimistic that the US economy, while still weak, is holding up better than economies elsewhere," said Kenichi Yumoto, vice head of forex at Societe Generale, adding that investors were generally "dollar bullish."
The greenback eased slightly eased ahead of US second- quarter economic growth figures due later in the day and Friday's key monthly jobs report.
"The dollar fell slightly below the 108 line because it was not on stable ground at the higher level," said Saburo Matsumoto, chief forex strategist at Sumitomo Trust Bank.
Currency dealers in the past several weeks have detected signs of an improvement in US economic momentum.
Although the employment report is expected to show a loss of jobs, "there is a growing view that Europe and Oceania are doing worse" amid the fallout from the US subprime loan crisis, said Yumoto at Societe Generale.
Wall Street analysts expect the US economy to have picked up pace after 1.0 per cent growth in the first quarter.
But they expect a loss of 75,000 jobs in July and the unemployment rate to tick up to 5.6 per cent.
A survey by human resources management group ADP showed the US private sector created 9,000 jobs in July, defying market expectations for losses.
Markets will also be looking at the Institute of Supply Management survey on manufacturing activity, which is also due out on Friday.
There were growing concerns about the health of the European economies after business and consumer confidence in the 15-member eurozone fell in July to its lowest level since March 2003.
Against Asian currencies, the dollar climbed to 44.22 Philippine pesos from 44.16 on Wednesday, to 33.53 Thai baht from 33.49, to 30.64 Taiwan dollars from 30.50, and to 1.3688 Singapore dollars from 1.3682.
It fell to 9,107.50 Indonesian rupiah from 9,115.50 but was flat at 1,010.30 South Korean won.