Dollar moves narrowly in Asian trade
Thursday, 26 June 2008
TOKYO, June 25 (AFP): The dollar was little changed in Asian trade today as the markets waited for the close of a US Federal Reserve meeting for clues on the outlook for interest rates, dealers said.
The dollar eased to 107.82 yen in Tokyo afternoon trade from 107.83 in New York late Tuesday.
The euro edged up to 1.5575 dollars from 1.5565 and to 167.92 yen from 167.83.
Markets were on tenterhooks for clues on the direction of US interest rates as the Federal Open Market Committee was to wrap up its two-day meeting later in the day and issue a statement.
Market watchers expect the US central bank to keep its rates on hold at 2.0 per cent after gloomy data on the world's largest economy, but the focus was on what the Fed will do in the future.
The Conference Board, a business research firm, Tuesday said US consumer confidence plunged to its lowest in June amid growing concerns about jobs, the economy and higher fuel prices.
At the same time, home prices in some US cities tumbled at a record rate as the woes of the property market showed few signs of abating.
Players are eager to see whether the Fed is concerned more about inflation or an economic slowdown in a statement released after the meeting. Inflation concerns could signal a desire to raise rates.
Some analysts questioned the effects of a tighter monetary policy, as there are still fears that the US economy could slip into recession.
The dollar eased to 107.82 yen in Tokyo afternoon trade from 107.83 in New York late Tuesday.
The euro edged up to 1.5575 dollars from 1.5565 and to 167.92 yen from 167.83.
Markets were on tenterhooks for clues on the direction of US interest rates as the Federal Open Market Committee was to wrap up its two-day meeting later in the day and issue a statement.
Market watchers expect the US central bank to keep its rates on hold at 2.0 per cent after gloomy data on the world's largest economy, but the focus was on what the Fed will do in the future.
The Conference Board, a business research firm, Tuesday said US consumer confidence plunged to its lowest in June amid growing concerns about jobs, the economy and higher fuel prices.
At the same time, home prices in some US cities tumbled at a record rate as the woes of the property market showed few signs of abating.
Players are eager to see whether the Fed is concerned more about inflation or an economic slowdown in a statement released after the meeting. Inflation concerns could signal a desire to raise rates.
Some analysts questioned the effects of a tighter monetary policy, as there are still fears that the US economy could slip into recession.