Dollar extends losses against yen, euro
Thursday, 24 September 2009
SINGAPORE, Sept 23 (AFP): The dollar continued to fall in Asian trade today amid increasing investor risk appetite and growing optimism over the prospects for a global rebound, analysts said.
The dollar changed hands at 90.81 yen in Singapore afternoon trade, down from 91.10 in late US trade Tuesday. Markets in Japan are closed for public holidays and will reopen Thursday.
The euro rose to 1.4802 dollars from 1.4792 in late US trade Tuesday. The European unit had moved as high as 1.4821 dollars Tuesday, its strongest since September 2008.
Against the Japanese unit, the euro traded at 134.42 yen compared with 134.95 Tuesday.
"We won't try and say too much more than the obvious fact that risk appetite remains buoyant and the US dollar is the easiest whipping-boy," analysts from Societe Generale said in a commentary.
"Until investors give up on selling the US dollar at better levels, new lows for the dollar index and highs for other currencies lie ahead."
The dollar is usually under pressure when risk appetite improves as investors seek to put their money into riskier assets that offer higher yields than the US currency.
"The brief respite that the dollar enjoyed over the past few sessions has seemingly come to an end for now with commodity and equity prices higher as well as risk appetite increasing," said Jon Gencher at BMO Capital Markets.
Meanwhile, traders are waiting for the conclusion later Wednesday of a Federal Reserve policy meeting although most are bracing for the US central bank to maintain its current monetary policy stance.
Camilla Sutton at Scotia Capital said most expect the Fed to maintain its base rate of zero to 0.25 per cent and that this will be "a dollar negative."
Against other Asian units, the dollar fell to 1,194.45 South Korean won from 1,203.75, to 32.355 Taiwan dollars from 32.360, to 47.42 Philippine pesos from 47.61, to 33.52 Thai baht from 33.68 and to 1.4109 Singapore dollars from 1.4145.
The greenback rose to 9,705.00 Indonesian rupiah from 9,695.00.
The dollar changed hands at 90.81 yen in Singapore afternoon trade, down from 91.10 in late US trade Tuesday. Markets in Japan are closed for public holidays and will reopen Thursday.
The euro rose to 1.4802 dollars from 1.4792 in late US trade Tuesday. The European unit had moved as high as 1.4821 dollars Tuesday, its strongest since September 2008.
Against the Japanese unit, the euro traded at 134.42 yen compared with 134.95 Tuesday.
"We won't try and say too much more than the obvious fact that risk appetite remains buoyant and the US dollar is the easiest whipping-boy," analysts from Societe Generale said in a commentary.
"Until investors give up on selling the US dollar at better levels, new lows for the dollar index and highs for other currencies lie ahead."
The dollar is usually under pressure when risk appetite improves as investors seek to put their money into riskier assets that offer higher yields than the US currency.
"The brief respite that the dollar enjoyed over the past few sessions has seemingly come to an end for now with commodity and equity prices higher as well as risk appetite increasing," said Jon Gencher at BMO Capital Markets.
Meanwhile, traders are waiting for the conclusion later Wednesday of a Federal Reserve policy meeting although most are bracing for the US central bank to maintain its current monetary policy stance.
Camilla Sutton at Scotia Capital said most expect the Fed to maintain its base rate of zero to 0.25 per cent and that this will be "a dollar negative."
Against other Asian units, the dollar fell to 1,194.45 South Korean won from 1,203.75, to 32.355 Taiwan dollars from 32.360, to 47.42 Philippine pesos from 47.61, to 33.52 Thai baht from 33.68 and to 1.4109 Singapore dollars from 1.4145.
The greenback rose to 9,705.00 Indonesian rupiah from 9,695.00.