Dollar hits one-month high against yen
Tuesday, 29 July 2008
TOKYO, July 28 (AFP): The dollar touched a one-month high above 108 yen in Asian trade today before profit-taking kicked in, as the market awaited upcoming data for any signs of an easing of US economic woes, dealers said.
The dollar hit 108.08 yen in early Asian trade, the strongest since June 26.
In Tokyo afternoon trade it stood at 107.84 yen, steady compared with its level of 107.85 in New York trade late Friday. The euro was stable at 1.5702 dollars after 1.5703 and at 169.31 yen against 169.35.
The greenback was supported by the recent fall in oil prices and buoyant data that eased concerns over the health of the US economy, dealers said.
"Overall, the data gives just a hint that the US economy might be starting to find a bottom," NAB Capital strategist John Kyriakopoulos wrote in a note to clients.
"We do not expect any rapid rebound in the US economy. We expect a very slow and grinding recovery. But the recognition that the worst is behind will reinforce the view that the Fed's next move is up, supporting the dollar."
The Commerce Department on Friday reported a smaller-than- expected fall in new US home sales in June, raising hope that the worst housing slump in decades was nearing a bottom.
The market will be looking for signs in this week's data that the worst of the US economic turmoil might be easing. Second- quarter growth figures are due Thursday followed by monthly jobs data on Friday, dealers said.
Against Asian currencies, the dollar slipped to 1,006.00 South Korean won from 1,007.70 on Friday, to 9,113.50 Indonesian rupiah from 9,135.00, to 30.40 Taiwan dollars from 30.43 and to 33.45 Thai baht from 33.465.
It rose to 1.3637 Singapore dollars from 1.3602 while holding steady at 44.05 Philippine pesos.
The dollar hit 108.08 yen in early Asian trade, the strongest since June 26.
In Tokyo afternoon trade it stood at 107.84 yen, steady compared with its level of 107.85 in New York trade late Friday. The euro was stable at 1.5702 dollars after 1.5703 and at 169.31 yen against 169.35.
The greenback was supported by the recent fall in oil prices and buoyant data that eased concerns over the health of the US economy, dealers said.
"Overall, the data gives just a hint that the US economy might be starting to find a bottom," NAB Capital strategist John Kyriakopoulos wrote in a note to clients.
"We do not expect any rapid rebound in the US economy. We expect a very slow and grinding recovery. But the recognition that the worst is behind will reinforce the view that the Fed's next move is up, supporting the dollar."
The Commerce Department on Friday reported a smaller-than- expected fall in new US home sales in June, raising hope that the worst housing slump in decades was nearing a bottom.
The market will be looking for signs in this week's data that the worst of the US economic turmoil might be easing. Second- quarter growth figures are due Thursday followed by monthly jobs data on Friday, dealers said.
Against Asian currencies, the dollar slipped to 1,006.00 South Korean won from 1,007.70 on Friday, to 9,113.50 Indonesian rupiah from 9,135.00, to 30.40 Taiwan dollars from 30.43 and to 33.45 Thai baht from 33.465.
It rose to 1.3637 Singapore dollars from 1.3602 while holding steady at 44.05 Philippine pesos.