Dollar rebounds in Asian trade
Tuesday, 8 April 2008
TOKYO, Apr 7 (AFP): The dollar rebounded in Asian trade Monday as some traders looked beyond recent gloomy US data, betting on a recovery in the world's largest economy later in the year, dealers said.
The dollar stood at 102.44 yen in Tokyo afternoon trade, up from 101.45 yen in New York Friday.
The euro slipped to 1.5668 dollars from 1.5736 but rose slightly to 160.51 yen from 159.60.
The US currency clawed back after falling Friday in response to news that the US economy lost 80,000 jobs last month, the biggest drop in five years.
The decline was much worse than the 50,000 losses in non- farm payrolls that most economists had been anticipating.
Traders said the weak US jobs report raised the odds that the Federal Reserve would continue its rate-cutting campaign.
Fed policymakers have slashed the federal funds short-term interest rate by three per centage points to 2.25 per cent since September to shore up economic growth, which is being challenged by a housing slump and a related credit crunch.
Some economists said they expect the central bank to unleash fresh rate cuts later this month following the release of the March jobs report.
Traders and currency speculators generally prefer to invest in countries where interest rates are expected to trend higher, so they can potentially reap higher returns.
The dollar was lifted by rumours that the finance ministers and central bankers from the Group of Seven industralised nations might signal measures to ease the greenback's recent weakness when they meet Friday, Nakane said.
Market participants will also be eyeing US retail, housing and consumption data to be released later this month for more clues for the US outlook, he said.
Against regional currencies, the dollar slipped to 1.3817 Singapore dollars in late Asian trade from 1.3844 Friday, to 30.40 Taiwan dollars from 30.418 and to 9,220.00 Indonesian rupiah from 9,225.00.
It also fell to 32.63 Thai baht from 31.65 and to 41.65 Philippine pesos from 41.72, but firmed to 974.00 South Korean won from 973.85.
The dollar stood at 102.44 yen in Tokyo afternoon trade, up from 101.45 yen in New York Friday.
The euro slipped to 1.5668 dollars from 1.5736 but rose slightly to 160.51 yen from 159.60.
The US currency clawed back after falling Friday in response to news that the US economy lost 80,000 jobs last month, the biggest drop in five years.
The decline was much worse than the 50,000 losses in non- farm payrolls that most economists had been anticipating.
Traders said the weak US jobs report raised the odds that the Federal Reserve would continue its rate-cutting campaign.
Fed policymakers have slashed the federal funds short-term interest rate by three per centage points to 2.25 per cent since September to shore up economic growth, which is being challenged by a housing slump and a related credit crunch.
Some economists said they expect the central bank to unleash fresh rate cuts later this month following the release of the March jobs report.
Traders and currency speculators generally prefer to invest in countries where interest rates are expected to trend higher, so they can potentially reap higher returns.
The dollar was lifted by rumours that the finance ministers and central bankers from the Group of Seven industralised nations might signal measures to ease the greenback's recent weakness when they meet Friday, Nakane said.
Market participants will also be eyeing US retail, housing and consumption data to be released later this month for more clues for the US outlook, he said.
Against regional currencies, the dollar slipped to 1.3817 Singapore dollars in late Asian trade from 1.3844 Friday, to 30.40 Taiwan dollars from 30.418 and to 9,220.00 Indonesian rupiah from 9,225.00.
It also fell to 32.63 Thai baht from 31.65 and to 41.65 Philippine pesos from 41.72, but firmed to 974.00 South Korean won from 973.85.