Dollar eases in Asian trade as financial worries linger
Friday, 18 July 2008
TOKYO, July 17 (AFP): The dollar reversed gains against the euro and yen in Asian trade today as markets remained on edge for surprises in US banking earnings despite a rally on Wall Street, dealers said.
The dollar eased to 104.97 yen in Tokyo afternoon trade from 105.12 in New York late Wednesday.
The euro firmed to 1.5862 dollars from 1.5821 and to 166.53 yen from 166.31.
"The dollar's overnight rally was limited as markets are cautious ahead of more banking results and have priced in that they will be negative," said Hideaki Inoue, chief forex manager at Mitsubishi UFJ Trust and Banking Corp.
Major US investment banks JPMorgan and Merrill Lynch are set to reveal their balance sheets later Thursday. Citigroup, which has been hit hard by the subprime loan crisis, reports earnings on Friday.
The greenback had firmed against other major currencies on Wednesday on falling oil prices and a surge in US shares triggered by a better-than-expected second quarter earnings reports by Wells Fargo and chip-maker Intel.
The US unit was also supported by speculation that the Federal Reserve may be forced to raise interest rates after a jump in consumer inflation.
"Inflation is currently too high," Fed chairman Ben Bernanke said in a second day of testimony to Congress, speaking after consumer prices rose 1.1 per cent in June from May for an annual pace of 5.0 per cent.
The monthly jump in the consumer price index was the sharpest since June 1982, while a 0.3 per cent rise in core CPI excluding energy and food was the strongest since January.
The euro had fallen from its all-time high against the dollar reached earlier this week on mounting worries over a cooling European economy, dealers said.
The dollar was mixed in regional Asian trade.
It edged up to 1.3502 Singapore dollars from 1.3478, to 9,155 Indonesian rupiah from 9,132.5 and to 1,013.00 South Korean won from 1,009.35.
The greenback slipped to 30.36 Taiwan dollars from 30.39, to 33.42 Thai baht from 33.49 and to 45.22 Philippine pesos from 45.47.
The dollar eased to 104.97 yen in Tokyo afternoon trade from 105.12 in New York late Wednesday.
The euro firmed to 1.5862 dollars from 1.5821 and to 166.53 yen from 166.31.
"The dollar's overnight rally was limited as markets are cautious ahead of more banking results and have priced in that they will be negative," said Hideaki Inoue, chief forex manager at Mitsubishi UFJ Trust and Banking Corp.
Major US investment banks JPMorgan and Merrill Lynch are set to reveal their balance sheets later Thursday. Citigroup, which has been hit hard by the subprime loan crisis, reports earnings on Friday.
The greenback had firmed against other major currencies on Wednesday on falling oil prices and a surge in US shares triggered by a better-than-expected second quarter earnings reports by Wells Fargo and chip-maker Intel.
The US unit was also supported by speculation that the Federal Reserve may be forced to raise interest rates after a jump in consumer inflation.
"Inflation is currently too high," Fed chairman Ben Bernanke said in a second day of testimony to Congress, speaking after consumer prices rose 1.1 per cent in June from May for an annual pace of 5.0 per cent.
The monthly jump in the consumer price index was the sharpest since June 1982, while a 0.3 per cent rise in core CPI excluding energy and food was the strongest since January.
The euro had fallen from its all-time high against the dollar reached earlier this week on mounting worries over a cooling European economy, dealers said.
The dollar was mixed in regional Asian trade.
It edged up to 1.3502 Singapore dollars from 1.3478, to 9,155 Indonesian rupiah from 9,132.5 and to 1,013.00 South Korean won from 1,009.35.
The greenback slipped to 30.36 Taiwan dollars from 30.39, to 33.42 Thai baht from 33.49 and to 45.22 Philippine pesos from 45.47.