Dollar languishes near record low against euro
Friday, 20 July 2007
TOKYO, July 19 (AFP): The dollar stayed near record lows against the euro in Asian trade today as the market digested a warning by US Federal Reserve chairman Ben Bernanke that housing problems could worsen, dealers said.
They said European currencies were still the strongest performers in general while the dollar and the yen remained under pressure as the market chased prospects of rising interest rates.
The dollar was flat at 121.94 yen in Tokyo afternoon trade from New York late Wednesday.
The euro eased to 1.3795 dollars from 1.3803, easing back from Wednesday's record high of 1.3833. The single currency slipped to 168.16 yen from 168.35.
Trading was being influenced by Bernanke's remarks on the US housing situation, said a forex trader at Sumitomo Trust Bank.
In his testimony to US Congress, Bernanke warned that the downturn in the US housing market, a key concern of investors at the moment, could deepen-but he also reiterated that inflation was the central bank's main worry.
With the focus on prospects of higher interest rates in Europe, players will listen closely to a speech by European Central Bank chief Jean- Claude Trichet Friday at a debate in Finland on stimulating European growth, dealers said.
Key British data including retail sales later Thursday will also be closely watched after signs of simmering inflation raised expectations that the Bank of England will hike rates again to 6.0 per cent sometime soon.
The pound remained near a 26-year high against the US currency in Asian trading, at 2.0520 dollars, down from 2.0529 in New York.
The greenback slipped against most regional Asian currencies, easing to 32.82 Taiwan dollars from 32.90 Wednesday, to 45.10 Philippine pesos from 45.36 and to 9,101 Indonesian rupiah from 9,120.
It fell to 30.175 Thai baht from 30.423 and to 1.5164 Singapore dollars from 1.5179, while edging up to 916.20 South Korean won from 915.61.
They said European currencies were still the strongest performers in general while the dollar and the yen remained under pressure as the market chased prospects of rising interest rates.
The dollar was flat at 121.94 yen in Tokyo afternoon trade from New York late Wednesday.
The euro eased to 1.3795 dollars from 1.3803, easing back from Wednesday's record high of 1.3833. The single currency slipped to 168.16 yen from 168.35.
Trading was being influenced by Bernanke's remarks on the US housing situation, said a forex trader at Sumitomo Trust Bank.
In his testimony to US Congress, Bernanke warned that the downturn in the US housing market, a key concern of investors at the moment, could deepen-but he also reiterated that inflation was the central bank's main worry.
With the focus on prospects of higher interest rates in Europe, players will listen closely to a speech by European Central Bank chief Jean- Claude Trichet Friday at a debate in Finland on stimulating European growth, dealers said.
Key British data including retail sales later Thursday will also be closely watched after signs of simmering inflation raised expectations that the Bank of England will hike rates again to 6.0 per cent sometime soon.
The pound remained near a 26-year high against the US currency in Asian trading, at 2.0520 dollars, down from 2.0529 in New York.
The greenback slipped against most regional Asian currencies, easing to 32.82 Taiwan dollars from 32.90 Wednesday, to 45.10 Philippine pesos from 45.36 and to 9,101 Indonesian rupiah from 9,120.
It fell to 30.175 Thai baht from 30.423 and to 1.5164 Singapore dollars from 1.5179, while edging up to 916.20 South Korean won from 915.61.