Dollar mixed in sluggish Asian trade
Wednesday, 20 February 2008
TOKYO, Feb 19 (AFP): The dollar was mixed in sluggish Asian trade today as market players looked for fresh leads amid signs that global financial markets are regaining stability, dealers said.
But they said there was a risk that dollar-selling pressure might return as investors remain wary about the outlook for the US economy and prospects for further interest rate cuts by the Federal Reserve.
The dollar was at 108.17 yen in Tokyo afternoon trade, up slightly from 108.13 in late European trade Monday, when US financial markets were closed for the President's Day holiday.
The euro was steady at 1.4662 dollars after 1.4654 and at 158.59 yen against 158.45 yen.
"Players are looking for new trading leads as they are still wondering which direction the market is heading toward in the short term," said Satoshi Tansho, a dealer at Chuo Mitsui Trust Bank.
"Not only the foreign exchange market but also stock markets are stabilising, so players seem to be taking a break. But it does not mean dollar-selling sentiment has disappeared in the long run.
The dollar fell last week after US Federal Reserve chairman Ben Bernanke kept the door open for further cuts in interest rates due to continuing signs of trouble in the US economy.
Sterling remained under pressure following Britain's plan announced Sunday to temporarily nationalise troubled mortgage lender Northern Rock, with the pound easing to 1.9494 dollars from 1.9512 Monday.
Against regional Asian currencies, the dollar slipped to 1.4114 Singapore dollars from 1.4116 Monday, to 31.66 Taiwan dollars from 31.73, to 944.10 South Korean won from 945.20 and to 40.62 Philippine pesos from 40.65.
At the same time it rose to 9,145.0 Indonesian rupiah from 9,144.0 and to 31.71 Thai baht from 31.59.
But they said there was a risk that dollar-selling pressure might return as investors remain wary about the outlook for the US economy and prospects for further interest rate cuts by the Federal Reserve.
The dollar was at 108.17 yen in Tokyo afternoon trade, up slightly from 108.13 in late European trade Monday, when US financial markets were closed for the President's Day holiday.
The euro was steady at 1.4662 dollars after 1.4654 and at 158.59 yen against 158.45 yen.
"Players are looking for new trading leads as they are still wondering which direction the market is heading toward in the short term," said Satoshi Tansho, a dealer at Chuo Mitsui Trust Bank.
"Not only the foreign exchange market but also stock markets are stabilising, so players seem to be taking a break. But it does not mean dollar-selling sentiment has disappeared in the long run.
The dollar fell last week after US Federal Reserve chairman Ben Bernanke kept the door open for further cuts in interest rates due to continuing signs of trouble in the US economy.
Sterling remained under pressure following Britain's plan announced Sunday to temporarily nationalise troubled mortgage lender Northern Rock, with the pound easing to 1.9494 dollars from 1.9512 Monday.
Against regional Asian currencies, the dollar slipped to 1.4114 Singapore dollars from 1.4116 Monday, to 31.66 Taiwan dollars from 31.73, to 944.10 South Korean won from 945.20 and to 40.62 Philippine pesos from 40.65.
At the same time it rose to 9,145.0 Indonesian rupiah from 9,144.0 and to 31.71 Thai baht from 31.59.