Dollar higher against euro, yen in Asia
Thursday, 21 August 2008
TOKYO, Aug 20 (AFP): The dollar turned higher against the euro and the yen in Asian trade today after a brief selloff sparked by fresh worries about the health of the US economy, dealers said.
Market watchers said that whether the greenback can continue to drive back its major rivals will probably depend on whether world oil prices decline again and how stocks perform on Wall Street.
The dollar rose to 109.91 yen in Tokyo afternoon trade from 109.67 in New York late Tuesday. The euro fell to 1.4764 dollars from 1.4783 but gained to 162.30 yen from 162.15.
The greenback had slipped in New York after a spike in inflation and weak US housing market figures stoked fresh concerns about the US economy, sending share prices lower on Wall Street for a second straight day, "We continue to watch the direction of share prices," said Saburo Matsumoto, chief forex strategist at Sumitomo Trust Bank.
"If oil prices fall further, the dollar may regain its force," he said.
After falling to a record 1.60 against the euro in mid-July, the dollar has since enjoyed a month-long rebound.
At one point Tuesday the euro sank to a new six-month low of 1.4631 dollars. Last week the dollar reached its highest level since January against the yen.
Some market watchers think the greenback may have risen too quickly. Masatsugu Miyata, a forex dealer at Hachijuni Bank, said the US currency was likely to give back some of its recent gains.
"The yen may advance to the mid-109 (per dollar) level on technical factors," he said.
Against regional Asian currencies, the dollar fell to 1,048.90 South Korean won from 1,049.00 Tuesday, to 1.4092 Singapore dollars from 1.4142 and to 9,182.5 Indonesian rupiah from 9,185.
But it rose to 34.14 Thai baht from 33.95, to 31.38 Taiwan dollars from 31.36 and to 45.68 Philippine pesos from 45.45.
Market watchers said that whether the greenback can continue to drive back its major rivals will probably depend on whether world oil prices decline again and how stocks perform on Wall Street.
The dollar rose to 109.91 yen in Tokyo afternoon trade from 109.67 in New York late Tuesday. The euro fell to 1.4764 dollars from 1.4783 but gained to 162.30 yen from 162.15.
The greenback had slipped in New York after a spike in inflation and weak US housing market figures stoked fresh concerns about the US economy, sending share prices lower on Wall Street for a second straight day, "We continue to watch the direction of share prices," said Saburo Matsumoto, chief forex strategist at Sumitomo Trust Bank.
"If oil prices fall further, the dollar may regain its force," he said.
After falling to a record 1.60 against the euro in mid-July, the dollar has since enjoyed a month-long rebound.
At one point Tuesday the euro sank to a new six-month low of 1.4631 dollars. Last week the dollar reached its highest level since January against the yen.
Some market watchers think the greenback may have risen too quickly. Masatsugu Miyata, a forex dealer at Hachijuni Bank, said the US currency was likely to give back some of its recent gains.
"The yen may advance to the mid-109 (per dollar) level on technical factors," he said.
Against regional Asian currencies, the dollar fell to 1,048.90 South Korean won from 1,049.00 Tuesday, to 1.4092 Singapore dollars from 1.4142 and to 9,182.5 Indonesian rupiah from 9,185.
But it rose to 34.14 Thai baht from 33.95, to 31.38 Taiwan dollars from 31.36 and to 45.68 Philippine pesos from 45.45.