Dollar rises in Asia as subprime worries recede
Friday, 30 November 2007
TOKYO, Nov 29 (AFP): The dollar edged higher in Asian trade today as worries over the US mortgage crisis abated after Wall Street rallied for a second straight day, dealers said.
The euro eased to 1.4825 dollars in Tokyo afternoon trade from 1.4836 late Wednesday in New York.
The dollar inched up to 110.04 yen from 109.99. The euro edged down to 163.04 yen from 163.21.
"Worries over (the outlook for) the dollar have receded for now," said Nobuaki Tani, a currency analyst at Resona Bank.
"The New York stock markets rose sharply for a second day (Wednesday), making investors feel safe to buy dollars," he said.
Wall Street was lifted by a slide in crude oil prices and renewed hopes for a Federal Reserve interest rate cut next month, dealers said.
Fed vice chairman Donald Kohn said the central bank must be "nimble" in policy and "should not hold the economy hostage" to teach a lesson to financial market speculators.
The euro eased to 1.4825 dollars in Tokyo afternoon trade from 1.4836 late Wednesday in New York.
The dollar inched up to 110.04 yen from 109.99. The euro edged down to 163.04 yen from 163.21.
"Worries over (the outlook for) the dollar have receded for now," said Nobuaki Tani, a currency analyst at Resona Bank.
"The New York stock markets rose sharply for a second day (Wednesday), making investors feel safe to buy dollars," he said.
Wall Street was lifted by a slide in crude oil prices and renewed hopes for a Federal Reserve interest rate cut next month, dealers said.
Fed vice chairman Donald Kohn said the central bank must be "nimble" in policy and "should not hold the economy hostage" to teach a lesson to financial market speculators.