Dollar falls against yen after weak US homes data
Tuesday, 1 January 2008
SINGAPORE, Dec 31 (AFP): The dollar fell against the yen on the last trading day of the year today after weak US data on new home sales, dealers said.
They said there was also some squaring of positions ahead of Tuesday's New Year holiday. Tokyo trading was closed for a market holiday Monday and was to remain shut until Friday.
The euro was at 1.4742, up from 1.4724 dollars late Friday. The yen traded at 111.96, up from 112.32 to the dollar late Friday.
Weaker-than-expected US new home sales data released Friday had affected the market, said Thomas Lam, an economist with United Overseas Bank.
The figures showed a nine per cent fall in US new home sales in November because of a lack of mortgage availability and consumer pessimism. It was the slowest sales rate in more than 12 years.
Concerns about the persistent US housing market crisis and its impact on the world's largest economy are expected to keep the dollar under pressure, dealers said.
Dealers described trading as muted ahead of the new year.
Lam said economic releases were due from the US, starting Wednesday with the Federal Open Market Committee minutes, construction spending figures and a key manufacturing survey. Figures for employment growth are due later in the week.
Lam said market sentiment had improved since mid-December, when the US Federal Reserve and four other central banks announced a joint initiative to ease a global credit squeeze.
They said there was also some squaring of positions ahead of Tuesday's New Year holiday. Tokyo trading was closed for a market holiday Monday and was to remain shut until Friday.
The euro was at 1.4742, up from 1.4724 dollars late Friday. The yen traded at 111.96, up from 112.32 to the dollar late Friday.
Weaker-than-expected US new home sales data released Friday had affected the market, said Thomas Lam, an economist with United Overseas Bank.
The figures showed a nine per cent fall in US new home sales in November because of a lack of mortgage availability and consumer pessimism. It was the slowest sales rate in more than 12 years.
Concerns about the persistent US housing market crisis and its impact on the world's largest economy are expected to keep the dollar under pressure, dealers said.
Dealers described trading as muted ahead of the new year.
Lam said economic releases were due from the US, starting Wednesday with the Federal Open Market Committee minutes, construction spending figures and a key manufacturing survey. Figures for employment growth are due later in the week.
Lam said market sentiment had improved since mid-December, when the US Federal Reserve and four other central banks announced a joint initiative to ease a global credit squeeze.