Dollar stable in Asia after Fed meeting
Friday, 27 June 2008
TOKYO, June 26 (AFP): The dollar was rangebound in Asian trade today after the Federal Reserve held interest rates steady and gave no sign it is preparing to raise them in the immediate future, dealers said.
The euro struck a record high against the yen on speculation that interest rates may rise in the eurozone, they added.
The dollar was changing hands at 107.92 yen in Tokyo afternoon trade against 107.82 in New York late Wednesday.
The euro edged up to 1.5680 dollars from 1.5667 and to 169.19 yen from 168.93.
The single currency earlier hit an all-time high of 169.33 yen on speculation that the European Central Bank may hike interest rates to tackle inflation, widening the yield gap with Japan, dealers said.
The Federal Open Market Committee (FOMC) decided to leave its key base interest rate unchanged at 2.0 per cent as widely anticipated at the end of a two-day meeting Wednesday.
The Fed statement said: "Although downside risks to growth remain, they appear to have diminished somewhat, and the upside risks to inflation and inflation expectations have increased."
Another report from Mumbai adds: The Indian rupee strengthened by another four paise to 42.70/71 against the greenback Thursday amid buoyant equity markets and some month-end dollar demand from oil refiners.
At the Interbank Foreign Exchange (forex) market, the local currency resumed firm at 42.66/67 a dollar from its last close of 42.7450/7550 a dollar, but later came under pressure and was quoted at 42.70/71 a dollar in the late Thursday morning deals.
Dealers said the domestic unit opened stronger against dollar on a further surge in equity markets but dollar buying by oil companies weighed on the rupee sentiment.
The euro struck a record high against the yen on speculation that interest rates may rise in the eurozone, they added.
The dollar was changing hands at 107.92 yen in Tokyo afternoon trade against 107.82 in New York late Wednesday.
The euro edged up to 1.5680 dollars from 1.5667 and to 169.19 yen from 168.93.
The single currency earlier hit an all-time high of 169.33 yen on speculation that the European Central Bank may hike interest rates to tackle inflation, widening the yield gap with Japan, dealers said.
The Federal Open Market Committee (FOMC) decided to leave its key base interest rate unchanged at 2.0 per cent as widely anticipated at the end of a two-day meeting Wednesday.
The Fed statement said: "Although downside risks to growth remain, they appear to have diminished somewhat, and the upside risks to inflation and inflation expectations have increased."
Another report from Mumbai adds: The Indian rupee strengthened by another four paise to 42.70/71 against the greenback Thursday amid buoyant equity markets and some month-end dollar demand from oil refiners.
At the Interbank Foreign Exchange (forex) market, the local currency resumed firm at 42.66/67 a dollar from its last close of 42.7450/7550 a dollar, but later came under pressure and was quoted at 42.70/71 a dollar in the late Thursday morning deals.
Dealers said the domestic unit opened stronger against dollar on a further surge in equity markets but dollar buying by oil companies weighed on the rupee sentiment.