Dollar dips in Asia on profit-taking
Tuesday, 19 August 2008
TOKYO, Aug 18 (AFP): The dollar eased back in Asia today from recent highs against the euro and the yen as traders locked in recent gains while waiting for fresh economic data, dealers said.
The dollar briefly slipped below the key 110-yen level before rebounding to 110.14 in Tokyo afternoon trade, down from 110.48 in New York Friday.
The euro rose to 1.4751 dollars from 1.4685. The euro firmed to 162.44 yen from 162.27.
Investors sold the greenback to take profits on its recent rise while exporters bought yen to repatriate their overseas earnings, said Sumitomo Trust Bank chief forex strategist Saburo Matsumoto.
"Sentiment towards European growth has been steadily deteriorating, putting downward pressure on the euro," said Matsumoto.
The dollar recently has risen to a six-month peak against the euro and to its highest level since January against the yen on worries that the fallout from the US financial crisis is spreading to other major economies.
With inflation at a decade-high and Japan's economy in a downturn, the Bank of Japan is expected to leave interest rates on hold at 0.5 per cent for now.
Against regional Asian currencies, the dollar edged up to 1,044.55 South Korean won from 1,039.70 on Friday, to 33.84 Thai baht from 33.77, to 9,210 Indonesian rupiah from 9,190 and to 31.41 Taiwan dollars from 31.36.
But the greenback slipped to 1.4118 Singapore dollars from 1.4150 and to 45.23 Philippine pesos 45.27.
The dollar briefly slipped below the key 110-yen level before rebounding to 110.14 in Tokyo afternoon trade, down from 110.48 in New York Friday.
The euro rose to 1.4751 dollars from 1.4685. The euro firmed to 162.44 yen from 162.27.
Investors sold the greenback to take profits on its recent rise while exporters bought yen to repatriate their overseas earnings, said Sumitomo Trust Bank chief forex strategist Saburo Matsumoto.
"Sentiment towards European growth has been steadily deteriorating, putting downward pressure on the euro," said Matsumoto.
The dollar recently has risen to a six-month peak against the euro and to its highest level since January against the yen on worries that the fallout from the US financial crisis is spreading to other major economies.
With inflation at a decade-high and Japan's economy in a downturn, the Bank of Japan is expected to leave interest rates on hold at 0.5 per cent for now.
Against regional Asian currencies, the dollar edged up to 1,044.55 South Korean won from 1,039.70 on Friday, to 33.84 Thai baht from 33.77, to 9,210 Indonesian rupiah from 9,190 and to 31.41 Taiwan dollars from 31.36.
But the greenback slipped to 1.4118 Singapore dollars from 1.4150 and to 45.23 Philippine pesos 45.27.