Dollar firms amid caution over G8 talks
Tuesday, 8 July 2008
TOKYO, July 7 (AFP): The dollar firmed in Asian trade today as the market waited to see if leaders of the world's industrialised nations sent a message to support the sliding greenback at the G8 summit, traders said.
The dollar also rose on receding expectations of additional hikes by the European Central Bank and an upturn in Japanese share prices which prodded players to buy more dollar-denominated risky assets with the yen, they said.
The dollar was changing hands at 107.26 yen in Tokyo afternoon trade, up from 106.63 in Europe late Friday.
The euro bought 1.5633 dollars, down from 1.57 dollars, while rising to 167.70 yen from 167.39 yen. The US markets were closed Friday for the Independence Day holiday.
Leaders of the Group of Eight (G8) richest nations started talks Monday in the northern Japanese town of Toyako.
US President George W. Bush Sunday reaffirmed the United States "believes in a strong dollar," saying the US economy's fundamental strength would ultimately support the flagging currency.
Osamu Takashima, chief currency analyst at Bank of Tokyo- Mitsubishi UFJ, said even though Bush was only reflecting the official US position, "it bears importance that he repeated the policy on a summit occasion".
There is also caution in the market as senior monetary officials are to speak later this week, including congressional testimony by Federal Reserve chairman Ben Bernanke Thursday, he said.
Against regional Asian currencies, the dollar edged up to 1.3615 Singapore dollars from 1.3600 Friday, and to 33.60 Thai baht from 33.42.
It slipped to 30.39 Taiwan dollars from 30.42, to 9,205.00 Indonesian rupiah from 9,218.00, and to 1,042.60 South Korean won from 1,048.50. It held steady at 45.49 Philippine pesos.
The dollar also rose on receding expectations of additional hikes by the European Central Bank and an upturn in Japanese share prices which prodded players to buy more dollar-denominated risky assets with the yen, they said.
The dollar was changing hands at 107.26 yen in Tokyo afternoon trade, up from 106.63 in Europe late Friday.
The euro bought 1.5633 dollars, down from 1.57 dollars, while rising to 167.70 yen from 167.39 yen. The US markets were closed Friday for the Independence Day holiday.
Leaders of the Group of Eight (G8) richest nations started talks Monday in the northern Japanese town of Toyako.
US President George W. Bush Sunday reaffirmed the United States "believes in a strong dollar," saying the US economy's fundamental strength would ultimately support the flagging currency.
Osamu Takashima, chief currency analyst at Bank of Tokyo- Mitsubishi UFJ, said even though Bush was only reflecting the official US position, "it bears importance that he repeated the policy on a summit occasion".
There is also caution in the market as senior monetary officials are to speak later this week, including congressional testimony by Federal Reserve chairman Ben Bernanke Thursday, he said.
Against regional Asian currencies, the dollar edged up to 1.3615 Singapore dollars from 1.3600 Friday, and to 33.60 Thai baht from 33.42.
It slipped to 30.39 Taiwan dollars from 30.42, to 9,205.00 Indonesian rupiah from 9,218.00, and to 1,042.60 South Korean won from 1,048.50. It held steady at 45.49 Philippine pesos.