Dollar little changed in Asia
Wednesday, 23 July 2008
TOKYO, July 22 (AFP): The dollar was steady in Asian trade Monday as worries about resurgent oil prices offset relief that major US banks' earnings were not as bad as feared, dealers said.
The US currency was little changed at 106.46 yen in Tokyo afternoon trade compared with 106.41 in New York late Monday.
The euro rose slightly to 1.5926 dollars from 1.5921 and to 169.55 yen from 169.42.
"I don't think the dollar will move much this week against the Japanese currency," said Masatsugu Miyata, forex dealer at Hachijuni Bank. "We don't see many factors to support the yen."
Traders returning to work in Tokyo after a long weekend opted to wait for fresh leads after a rebound in oil prices counter-balanced easing concern about problems in the US financial sector, dealers said.
Dealers were monitoring trading in the euro against the yen.
The euro continued to be supported by the higher level of interest rates in the eurozone compared with those in the US and Japan because investors generally prefer currencies offering better yields, dealers said.
Overnight the greenback got a boost after Bank of America posted a quarterly profit well above expectations, further soothing jitters about US financial woes after last week's smaller-than-expected loss at Citigroup.
But gains in the dollar were short-lived as oil prices, which plunged more than 16 dollars a barrel in New York last week, surged higher as a tropical storm barrelled through the Gulf of Mexico, threatening oil installations.
Against Asian currencies, the dollar gained to 1.3524 Singapore dollars from 1.3512 Monday, to 30.37 Taiwan dollars from 30.35 and to 9,165 Indonesian rupiah from 9,148.
It rose to 44.655 Philippine pesos from 44.375 and to 33.36 Thai baht from 33.30, but edged down to 1,017.1 South Korean won from 1,017.3.
The US currency was little changed at 106.46 yen in Tokyo afternoon trade compared with 106.41 in New York late Monday.
The euro rose slightly to 1.5926 dollars from 1.5921 and to 169.55 yen from 169.42.
"I don't think the dollar will move much this week against the Japanese currency," said Masatsugu Miyata, forex dealer at Hachijuni Bank. "We don't see many factors to support the yen."
Traders returning to work in Tokyo after a long weekend opted to wait for fresh leads after a rebound in oil prices counter-balanced easing concern about problems in the US financial sector, dealers said.
Dealers were monitoring trading in the euro against the yen.
The euro continued to be supported by the higher level of interest rates in the eurozone compared with those in the US and Japan because investors generally prefer currencies offering better yields, dealers said.
Overnight the greenback got a boost after Bank of America posted a quarterly profit well above expectations, further soothing jitters about US financial woes after last week's smaller-than-expected loss at Citigroup.
But gains in the dollar were short-lived as oil prices, which plunged more than 16 dollars a barrel in New York last week, surged higher as a tropical storm barrelled through the Gulf of Mexico, threatening oil installations.
Against Asian currencies, the dollar gained to 1.3524 Singapore dollars from 1.3512 Monday, to 30.37 Taiwan dollars from 30.35 and to 9,165 Indonesian rupiah from 9,148.
It rose to 44.655 Philippine pesos from 44.375 and to 33.36 Thai baht from 33.30, but edged down to 1,017.1 South Korean won from 1,017.3.