Dollar eases in Asia after Japan, US rate decisions
Friday, 19 March 2010
TOKYO, March 18 (AFP): The dollar eased against the yen in Asian trade today as investors took a breather after the US and Japanese central banks decided to keep interest rates a record lows.
The greenback fell to 90.16 yen in Tokyo afternoon trade from 90.33 yen late Wednesday in New York, where the dollar had recouped an earlier loss from the Federal Reserve's decision to keep the cost of borrowing at rock bottom.
The euro declined to 1.3684 dollars from 1.3735 dollars in New York, while also dropping to 123.40 yen from 124.05 yen.
"Investors for now are stepping aside after a round of key interest rate decisions in Japan and the United States," said Masatsugu Miyata, forex dealer at Hachijuni Bank.
"They are trying to look ahead to what the central banks will do next month while monitoring US economic reports later today, including initial jobless claims," he said.
The Bank of Japan decided Wednesday to double the amount of cash it would make available to banks while keeping key interest rates at a record low 0.1 per cent to support a fragile economic recovery.
The Fed has also maintained its benchmark rate at virtually zero per cent, temporarily sending the euro higher against the greenback.
But the single European currency has remained under pressure amid persistent market concerns over the lack of details from an EU plan to make emergency loans available to Greece, if needed, to shield the country from bankruptcy.
Hachijuni's Miyata warned of the euro possibly losing further ground.
"Concerns for the European debt crisis still linger, keeping the currency top- heavy," he said.
"If the euro tumbles, the dollar may test below the 90-yen level against the Japanese unit," a safe-heaven currency when risk appetite recedes, he said.
Against regional currencies the dollar rose to 1,132.25 South Korean won from 1,128.70 a day earlier, to 1.3938 Singapore dollars from 1.3928, to 9,130 Indonesian rupiah from 9,105 and to 45.63 Philippine pesos from 45.61.
The greenback fell to 31.69 Taiwan dollars from 31.72 and to 32.30 Thai baht from 32.36.
The race for market share in apparel
According to the NPD group, Apparel sales in the US are down 4.7 per cent to $189 Billion. We believe apparel sales will be flat in 2010. Despite the slight up tick in retail sales in February; the country still faces high unemployment, commodity prices will likely increase in 2010 which will slow the hiring process to preserve margins, and consumers now value saving more than spending.
Winning retailers and manufacturers in flat categories are the ones that gain market share. This is going to be tough because the tactics used to gain share often go against the cost control efforts many companies put in place to weather the sales declines of 2009. Getting a greater share of shoppers requires increasing advertising and promotion spending, or developing unique merchandise to attract shoppers outside of the normal core. Growing transaction value or basket size requires getting consumers to trade up or buy more. With inventories trimmed and ad budgets slashed, increases to either one are going to be risky. Topline growth will need to materialise or retailers will find themselves burning cash.
The greenback fell to 90.16 yen in Tokyo afternoon trade from 90.33 yen late Wednesday in New York, where the dollar had recouped an earlier loss from the Federal Reserve's decision to keep the cost of borrowing at rock bottom.
The euro declined to 1.3684 dollars from 1.3735 dollars in New York, while also dropping to 123.40 yen from 124.05 yen.
"Investors for now are stepping aside after a round of key interest rate decisions in Japan and the United States," said Masatsugu Miyata, forex dealer at Hachijuni Bank.
"They are trying to look ahead to what the central banks will do next month while monitoring US economic reports later today, including initial jobless claims," he said.
The Bank of Japan decided Wednesday to double the amount of cash it would make available to banks while keeping key interest rates at a record low 0.1 per cent to support a fragile economic recovery.
The Fed has also maintained its benchmark rate at virtually zero per cent, temporarily sending the euro higher against the greenback.
But the single European currency has remained under pressure amid persistent market concerns over the lack of details from an EU plan to make emergency loans available to Greece, if needed, to shield the country from bankruptcy.
Hachijuni's Miyata warned of the euro possibly losing further ground.
"Concerns for the European debt crisis still linger, keeping the currency top- heavy," he said.
"If the euro tumbles, the dollar may test below the 90-yen level against the Japanese unit," a safe-heaven currency when risk appetite recedes, he said.
Against regional currencies the dollar rose to 1,132.25 South Korean won from 1,128.70 a day earlier, to 1.3938 Singapore dollars from 1.3928, to 9,130 Indonesian rupiah from 9,105 and to 45.63 Philippine pesos from 45.61.
The greenback fell to 31.69 Taiwan dollars from 31.72 and to 32.30 Thai baht from 32.36.
The race for market share in apparel
According to the NPD group, Apparel sales in the US are down 4.7 per cent to $189 Billion. We believe apparel sales will be flat in 2010. Despite the slight up tick in retail sales in February; the country still faces high unemployment, commodity prices will likely increase in 2010 which will slow the hiring process to preserve margins, and consumers now value saving more than spending.
Winning retailers and manufacturers in flat categories are the ones that gain market share. This is going to be tough because the tactics used to gain share often go against the cost control efforts many companies put in place to weather the sales declines of 2009. Getting a greater share of shoppers requires increasing advertising and promotion spending, or developing unique merchandise to attract shoppers outside of the normal core. Growing transaction value or basket size requires getting consumers to trade up or buy more. With inventories trimmed and ad budgets slashed, increases to either one are going to be risky. Topline growth will need to materialise or retailers will find themselves burning cash.