Dollar mixed in Asia
Wednesday, 9 January 2008
TOKYO, Jan 8 (AFP): The dollar was narrowly mixed in Asian trade today as market players waited for signals on how the world's top central banks will respond to slowing global economic growth, dealers said.
They said the focus was on a speech by Federal Reserve chairman Ben Bernanke and two interest rate decisions in Europe later this week, amid growing fears of a US recession.
The euro firmed to 1.4705 dollars in Tokyo afternoon trade from 1.4691 in New York late Monday.
The greenback edged up to 109.24 yen from 109.13 while the euro strengthened to 160.64 yen after 160.37.
With little major data due this week, players were looking ahead to a speech Thursday in Washington by Bernanke on the economic outlook, dealers said.
Investors will be looking for hints on how much the US central bank might cut interest rates by next month in an effort to stave off a recession, following recent signs of weakness in the labour market, they added.
Analysts anticipate another US rate cut later this month but they are divided between expectations of a 25 basis point cut and a heftier 50 basis point reduction.
Dealers were also waiting ahead of interest rate decisions by the European Central Bank and the Bank of England Thursday.
ECB policymakers meanwhile are expected to hold rates steady for now as inflation remains a concern, dealers said.
The Bank of England's decision is expected to be a close call, with a small but growing number of analysts predicting a quarter-point rate cut for the second month in a row, to 5.25 per cent.
The dollar was mostly lower against regional Asian currencies, falling to 1.4328 Singapore dollars from 1.4344, to 938.90 South Korean won from 940.75 and to 9,450 Indonesian rupiah from 9,458.
It eased to 40.82 Philippine pesos from 41.03 and to 29.76 Thai baht from 29.81, while holding steady at 32.46 Taiwan dollars.
They said the focus was on a speech by Federal Reserve chairman Ben Bernanke and two interest rate decisions in Europe later this week, amid growing fears of a US recession.
The euro firmed to 1.4705 dollars in Tokyo afternoon trade from 1.4691 in New York late Monday.
The greenback edged up to 109.24 yen from 109.13 while the euro strengthened to 160.64 yen after 160.37.
With little major data due this week, players were looking ahead to a speech Thursday in Washington by Bernanke on the economic outlook, dealers said.
Investors will be looking for hints on how much the US central bank might cut interest rates by next month in an effort to stave off a recession, following recent signs of weakness in the labour market, they added.
Analysts anticipate another US rate cut later this month but they are divided between expectations of a 25 basis point cut and a heftier 50 basis point reduction.
Dealers were also waiting ahead of interest rate decisions by the European Central Bank and the Bank of England Thursday.
ECB policymakers meanwhile are expected to hold rates steady for now as inflation remains a concern, dealers said.
The Bank of England's decision is expected to be a close call, with a small but growing number of analysts predicting a quarter-point rate cut for the second month in a row, to 5.25 per cent.
The dollar was mostly lower against regional Asian currencies, falling to 1.4328 Singapore dollars from 1.4344, to 938.90 South Korean won from 940.75 and to 9,450 Indonesian rupiah from 9,458.
It eased to 40.82 Philippine pesos from 41.03 and to 29.76 Thai baht from 29.81, while holding steady at 32.46 Taiwan dollars.