Dollar mixed in volatile Asian trade
Friday, 31 August 2007
TOKYO, Aug 30 (AFP): The dollar was mixed in volatile Asian trade today as investors waited for further economic developments in the United States to gauge the state of jittery markets, dealers said.
The dollar dropped to 115.35 yen in Tokyo afternoon trade from 116.13 in New York late Wednesday.
The euro also fell to 1.3652 dollars from 1.3676 and to 157.49 yen from 158.84.
Foreign exchange trading followed closely on the heels of Wall Street which rallied strongly overnight from a fall the day before on soft data in the troubled housing sector.
Market sentiment was buoyed Wednesday after the release of a letter from Federal Reserve chairman Ben Bernanke to Senator Chuck Schumer.
The letter said the Fed is "prepared to act as needed to mitigate the adverse effects on the economy arising from the disruptions in financial markets."
The market was now anxiously awaiting further clues when Bernanke delivers a speech Friday at the Fed's annual symposium in Jackson Hole, Wyoming.
Australian and New Zealand dollars, as well as the British pound, are preferred currencies for carry trades due to high interest rates in the countries.
The Australian dollar firmed to 94.03 yen from 92.86 and the British pound was stable at 232.38 from 232.69.
The problems in the US mortgage market erupted due to "subprime" home borrowers with shaky credit histories defaulting on their loans. Investors backed by assets in this market rushed to cover their losses, triggering fears of a liquidity squeeze.
The Federal Reserve Wednesday pumped 5.25 billion dollars more into the banking system, the third consecutive daily injection this week aimed at easing a credit squeeze.
The dollar was on the backfoot against most Asian currencies.
It slipped to 1.5232 Singapore dollars from 1.5267, to 46.69 Philippine pesos from 46.89, to 9,409.5 Indonesian rupiah from 9,422.5 and to 939.90 South Korean won from 942.85.
The greenback was stable at 33.05 Taiwan dollars and at 32.76 Thai baht.
The dollar dropped to 115.35 yen in Tokyo afternoon trade from 116.13 in New York late Wednesday.
The euro also fell to 1.3652 dollars from 1.3676 and to 157.49 yen from 158.84.
Foreign exchange trading followed closely on the heels of Wall Street which rallied strongly overnight from a fall the day before on soft data in the troubled housing sector.
Market sentiment was buoyed Wednesday after the release of a letter from Federal Reserve chairman Ben Bernanke to Senator Chuck Schumer.
The letter said the Fed is "prepared to act as needed to mitigate the adverse effects on the economy arising from the disruptions in financial markets."
The market was now anxiously awaiting further clues when Bernanke delivers a speech Friday at the Fed's annual symposium in Jackson Hole, Wyoming.
Australian and New Zealand dollars, as well as the British pound, are preferred currencies for carry trades due to high interest rates in the countries.
The Australian dollar firmed to 94.03 yen from 92.86 and the British pound was stable at 232.38 from 232.69.
The problems in the US mortgage market erupted due to "subprime" home borrowers with shaky credit histories defaulting on their loans. Investors backed by assets in this market rushed to cover their losses, triggering fears of a liquidity squeeze.
The Federal Reserve Wednesday pumped 5.25 billion dollars more into the banking system, the third consecutive daily injection this week aimed at easing a credit squeeze.
The dollar was on the backfoot against most Asian currencies.
It slipped to 1.5232 Singapore dollars from 1.5267, to 46.69 Philippine pesos from 46.89, to 9,409.5 Indonesian rupiah from 9,422.5 and to 939.90 South Korean won from 942.85.
The greenback was stable at 33.05 Taiwan dollars and at 32.76 Thai baht.