Dollar edges higher in Asia

The dollar edged up against the euro and the yen in Asian trade Thursday, building on the 11-month high it reached against the European currency overnight as the market eyed US rate hikes. In afternoon Tokyo trade, the euro was quoted at $1.3244 and 137.55 yen, down from $1.3258 and 137.57 yen in New York late Wednesday. The dollar fetched 103.86 yen, up from 103.76 yen. The dollar-yen rate is set to test the 104 yen level, driven by rallies in Japanese stocks as well as minutes from the Fed meeting, Minori Uchida, chief currency analyst at the Bank of Tokyo-Mitsubishi UFJ, told Dow Jones Newswires. Tokyo stocks gained 0.74 per cent by mid-afternoon. A weaker yen is seen as positive for Japanese exporters as it makes their products more competitive abroad and inflates profits when repatriated. The dollar was mostly stronger against other Asia-Pacific currencies. It rose to Sg$1.2519 from Sg$1.2480 on Wednesday, to 32.06 Thai baht from 31.91 baht and to 11,724.50 Indonesian rupiah from 11,701.50 rupiah. The greenback also advanced to 1,023.90 South Korean won from 1,022.54 won and to 43.82 Philippine pesos from 43.81 pesos. It rose to Tw$29.99 from Tw$29.98 but slipped to 60.63 Indian rupees from 60.73 rupees. The Australian dollar fell to 92.53 US cents from 92.98 cents, while the Chinese yuan rose to 16.88 yen from 16.79 yen, according to AFP.