Dollar eases in Asian trade on Iran missile news
Thursday, 10 July 2008
TOKYO, July 9 (AFP): The dollar eased against the euro in Asian trade Wednesday as investors remained cautious over the United States (US) credit squeeze and news that Iran test-fired a long-range missile, dealers said.
Iran today test-fired its Shahab-3 missile, whose longer range puts Israel within reach, amid growing fears that the standoff over the contested Iranian nuclear drive could lead to war.
The Shahab-3 was among a broadside of nine missiles fired off in the early morning from an undisclosed location in the Iranian desert, state- run Arabic channel Al-Alam and its English counterpart Press-TV reported.
The euro was trading at 1.5710 dollars in Tokyo afternoon trade, up from 1.5664 dollars in New York late Tuesday, and to 168.62 yen from 168.40.
Dealers said the news on Iranian missile test would quickly fade as a trading peg, making the euro's gain short-lived.
"It was just a knee-jerk reaction to the headlines on this slow day," Yuji Saito, head of foreign exchange at Societe Generale, told Dow Jones Newswire.
Players are instead paying close attention to oil prices, which some said may have entered a correction phase.
A jump in Japan's machinery orders failed to spur the yen as overall economic conditions continue to cast a gloomy outlook for the world's second largest economy, dealers said.
The dollar was mostly lower against regional currencies, easing to 1.3624 Singapore dollars from 1.3630 on Tuesday, and to 45.57 Philippine pesos from 45.81.
The greenback also slipped to 9,190 Indonesian rupiah from 9,201 and to 1,004.70 South Korean won from 1,032.05. It was flat at 30.39 Taiwan dollars and at 33.64 Thai baht.
Iran today test-fired its Shahab-3 missile, whose longer range puts Israel within reach, amid growing fears that the standoff over the contested Iranian nuclear drive could lead to war.
The Shahab-3 was among a broadside of nine missiles fired off in the early morning from an undisclosed location in the Iranian desert, state- run Arabic channel Al-Alam and its English counterpart Press-TV reported.
The euro was trading at 1.5710 dollars in Tokyo afternoon trade, up from 1.5664 dollars in New York late Tuesday, and to 168.62 yen from 168.40.
Dealers said the news on Iranian missile test would quickly fade as a trading peg, making the euro's gain short-lived.
"It was just a knee-jerk reaction to the headlines on this slow day," Yuji Saito, head of foreign exchange at Societe Generale, told Dow Jones Newswire.
Players are instead paying close attention to oil prices, which some said may have entered a correction phase.
A jump in Japan's machinery orders failed to spur the yen as overall economic conditions continue to cast a gloomy outlook for the world's second largest economy, dealers said.
The dollar was mostly lower against regional currencies, easing to 1.3624 Singapore dollars from 1.3630 on Tuesday, and to 45.57 Philippine pesos from 45.81.
The greenback also slipped to 9,190 Indonesian rupiah from 9,201 and to 1,004.70 South Korean won from 1,032.05. It was flat at 30.39 Taiwan dollars and at 33.64 Thai baht.