Dollar marks pause in Asia
Wednesday, 11 November 2009
TOKYO, Nov 10 (AFP): The dollar took a breather in Asian trade Tuesday, but analysts said its weak tone remained intact due to renewed optimism about the outlook for the global economy.
The dollar dipped to 89.85 yen in Tokyo afternoon trade, from 89.95 in New York late Monday. The euro slipped to 1.4979 dollars from 1.4994, and to 134.59 yen after 134.89.
The greenback steadied after falling a day earlier when investors bought riskier, higher-return currencies such as the euro, dealers said.
"Still, there are few other games in town than dollar bashing," said Societe Generale analyst Patrick Bennett.
"There is probably a requirement for some divergent economic performances before the bearish dollar trend is reversed."
The greenback fell Monday after the Group of 20 nations pledged in their joint statement at a meeting in Scotland to maintain economic stimulus measures, while refraining from commenting on foreign exchange issues.
"Risk appetite seems to have received strong support from the pro-growth tone of most central banks last week and at the G20 meeting over the weekend," said Calyon analyst Sebastien Barbe.
"Such an environment remains consistent with further dollar softness, as the dollar is used as a funding currency" for risky investments, he added.
The euro is likely to benefit from any increased investor risk appetite because eurozone assets offer a higher yield than the "safe-haven" dollar, which is a more popular bet in times of greater economic turbulence, dealers said.
Against Asian currencies, the dollar rose to 1,162.00 South Korean won, from 1,159.58 a day earlier, to 1.3883 Singapore dollars from 1.3872 and to 9,441.23 Indonesian rupiah from 9,398.93.
At the same time it slipped to 32.34 Taiwan dollars from 32.35, to 33.31 Thai baht from 33.33 and to 46.84 Philippine pesos from from 47.00.
The dollar dipped to 89.85 yen in Tokyo afternoon trade, from 89.95 in New York late Monday. The euro slipped to 1.4979 dollars from 1.4994, and to 134.59 yen after 134.89.
The greenback steadied after falling a day earlier when investors bought riskier, higher-return currencies such as the euro, dealers said.
"Still, there are few other games in town than dollar bashing," said Societe Generale analyst Patrick Bennett.
"There is probably a requirement for some divergent economic performances before the bearish dollar trend is reversed."
The greenback fell Monday after the Group of 20 nations pledged in their joint statement at a meeting in Scotland to maintain economic stimulus measures, while refraining from commenting on foreign exchange issues.
"Risk appetite seems to have received strong support from the pro-growth tone of most central banks last week and at the G20 meeting over the weekend," said Calyon analyst Sebastien Barbe.
"Such an environment remains consistent with further dollar softness, as the dollar is used as a funding currency" for risky investments, he added.
The euro is likely to benefit from any increased investor risk appetite because eurozone assets offer a higher yield than the "safe-haven" dollar, which is a more popular bet in times of greater economic turbulence, dealers said.
Against Asian currencies, the dollar rose to 1,162.00 South Korean won, from 1,159.58 a day earlier, to 1.3883 Singapore dollars from 1.3872 and to 9,441.23 Indonesian rupiah from 9,398.93.
At the same time it slipped to 32.34 Taiwan dollars from 32.35, to 33.31 Thai baht from 33.33 and to 46.84 Philippine pesos from from 47.00.