Dollar falls in Asian trading
Thursday, 3 January 2008
SINGAPORE, Jan 2 (AFP): The dollar fell in Asian trading today amid speculation of another move by the Federal Reserve to cut interest rates to bolster the sluggish US economy, dealers said.
In afternoon trading, the dollar was lower at 111.60 yen from 111.70 yen in late New York trading hours Monday.
The euro rose to 1.4654 dollars from 1.4585 dollars.
Trading was closed Tuesday for New Year's Day and volumes remained thin because financial markets in Japan are closed until Friday.
Traders are betting the Fed will cut interest rates this month in a move to shore up the world's largest economy, dealers said.
Data last week showed US new home sales sank nine per cent in November, the slowest sales rate in more than 12 years, they added.
The Federal Reserve last trimmed interest rates in December, cutting the federal funds rate by a quarter per centage point to 4.25 per cent.
On Monday the US National Association of Realtors (NAR) reported that existing home sales in the US inched up 0.4 per cent in November, breaking an eight-month streak of declining sales amid the prolonged housing slump.
November sales indicated the beginnings of stabilisation in the troubled housing market, the industry group said.
Even though the world's biggest economy managed solid growth over the second and third quarters of 2007, some analysts say the Fed must be prepared for a slowdown in the face of tight credit and the housing market woes.
Against regional Asian currencies, the dollar rose to 1.4399 Singapore dollars from 1.4384 Monday, to 939.93 South Korean won from 934.22, to 9,427.45 Indonesian rupiah from 9,369.60 and to 42.33 Philippine pesos from 41.23.
The greenback fell to 32.43 Taiwan dollars from 32.45, and to 29.65 Thai baht from 29.89.
In afternoon trading, the dollar was lower at 111.60 yen from 111.70 yen in late New York trading hours Monday.
The euro rose to 1.4654 dollars from 1.4585 dollars.
Trading was closed Tuesday for New Year's Day and volumes remained thin because financial markets in Japan are closed until Friday.
Traders are betting the Fed will cut interest rates this month in a move to shore up the world's largest economy, dealers said.
Data last week showed US new home sales sank nine per cent in November, the slowest sales rate in more than 12 years, they added.
The Federal Reserve last trimmed interest rates in December, cutting the federal funds rate by a quarter per centage point to 4.25 per cent.
On Monday the US National Association of Realtors (NAR) reported that existing home sales in the US inched up 0.4 per cent in November, breaking an eight-month streak of declining sales amid the prolonged housing slump.
November sales indicated the beginnings of stabilisation in the troubled housing market, the industry group said.
Even though the world's biggest economy managed solid growth over the second and third quarters of 2007, some analysts say the Fed must be prepared for a slowdown in the face of tight credit and the housing market woes.
Against regional Asian currencies, the dollar rose to 1.4399 Singapore dollars from 1.4384 Monday, to 939.93 South Korean won from 934.22, to 9,427.45 Indonesian rupiah from 9,369.60 and to 42.33 Philippine pesos from 41.23.
The greenback fell to 32.43 Taiwan dollars from 32.45, and to 29.65 Thai baht from 29.89.