Dollar hits another record low against euro
Tuesday, 2 October 2007
TOKYO, Oct 1 (AFP): The dollar sank to a fresh record low against the euro in Asian deals today as traders waited nervously for a key US employment report due later this week, dealers said.
They said the greenback was steady against the yen after a central bank survey showed Japanese business confidence holding close to a two-year high despite recent financial market volatility.
The euro struck a new all-time high of 1.4283 in early Tokyo trade. By late afternoon it stood at 1.4260, down from 1.4266 in New York late Friday.
The dollar gained to 114.97 yen from 114.80 while the euro edged up to 163.95 yen from 163.82.
Traders were looking ahead to Friday's US non-farm payrolls data for fresh leads on the impact of credit market and housing woes on the economy.
"Although the market has already anticipated poor jobs data, traders are waiting for see if the Fed will reduce interest rates again," said Saburo Matsumoto, chief forex strategist at Sumitomo Trust Bank.
Market participants were also focusing on monetary policy meetings scheduled at the European Central Bank and the Bank of England Thursday, although no change is expected from either.
"As Europe and Britain were not immune to the subprime mortgage market troubles in the US it would be difficult for (the two central banks) to raise rates," said Matsumoto.
With the euro extending its recent record-breaking streak, traders will pay careful attention to remarks from top world finance chiefs at a Group of Seven meeting this weekend to see if they try to talk up the dollar, he added.
They said the greenback was steady against the yen after a central bank survey showed Japanese business confidence holding close to a two-year high despite recent financial market volatility.
The euro struck a new all-time high of 1.4283 in early Tokyo trade. By late afternoon it stood at 1.4260, down from 1.4266 in New York late Friday.
The dollar gained to 114.97 yen from 114.80 while the euro edged up to 163.95 yen from 163.82.
Traders were looking ahead to Friday's US non-farm payrolls data for fresh leads on the impact of credit market and housing woes on the economy.
"Although the market has already anticipated poor jobs data, traders are waiting for see if the Fed will reduce interest rates again," said Saburo Matsumoto, chief forex strategist at Sumitomo Trust Bank.
Market participants were also focusing on monetary policy meetings scheduled at the European Central Bank and the Bank of England Thursday, although no change is expected from either.
"As Europe and Britain were not immune to the subprime mortgage market troubles in the US it would be difficult for (the two central banks) to raise rates," said Matsumoto.
With the euro extending its recent record-breaking streak, traders will pay careful attention to remarks from top world finance chiefs at a Group of Seven meeting this weekend to see if they try to talk up the dollar, he added.