Dollar stable in Asia ahead of key data
Wednesday, 30 July 2008
TOKYO, July 29 (AFP): The dollar was little changed in Asian trade today as the market awaited important US data due this week for fresh leads on prospects for a recovery in the world's largest economy, dealers said.
The dollar was at 107.39 yen in Tokyo afternoon trade against 107.44 in New York late Monday, when it briefly touched a one- month high above 108 yen.
The euro was at 1.5745 dollars after 1.5741 and at 169.07 yen against 169.13.
"Traders are closely watching for key US data due out this week, such as the GDP growth on Thursday and monthly jobs data on Friday," said Hiroshi Sakurai, currency analyst at Mizuho Investors Securities.
An index measuring US consumer confidence was due later on Tuesday.
The dollar lost ground in US trade Monday on fresh concerns about the health of the US banking sector and renewed signs of inflation in Europe that could force up interest rates in the eurozone.
Markets were also rattled by news over the weekend that US regulators had closed two failed regional banks.
The underlying market trend was for a stronger euro against the dollar, because the eurozone is more attractive to investors in terms of both the level of interest rates and the pace of economic growth, Sakurai said.
"From what the Fed officials have said, I figure that the US central bank wants to raise rates to contain inflation after addressing worries over the financial market crisis as quickly as possible," he said.
Against Asian currencies, the dollar rose to 1,010.35 South Korean won from 1,006.00 on Monday, to 9,125.00 Indonesian rupiah from 9,113.50 and to 30.46 Taiwan dollars from 30.40.
It climbed to 33.48 Thai baht from 33.45 and to 44.31 Philippine pesos from 44.05, while slipping to 1.3628 Singapore dollars from 1.3637.
The dollar was at 107.39 yen in Tokyo afternoon trade against 107.44 in New York late Monday, when it briefly touched a one- month high above 108 yen.
The euro was at 1.5745 dollars after 1.5741 and at 169.07 yen against 169.13.
"Traders are closely watching for key US data due out this week, such as the GDP growth on Thursday and monthly jobs data on Friday," said Hiroshi Sakurai, currency analyst at Mizuho Investors Securities.
An index measuring US consumer confidence was due later on Tuesday.
The dollar lost ground in US trade Monday on fresh concerns about the health of the US banking sector and renewed signs of inflation in Europe that could force up interest rates in the eurozone.
Markets were also rattled by news over the weekend that US regulators had closed two failed regional banks.
The underlying market trend was for a stronger euro against the dollar, because the eurozone is more attractive to investors in terms of both the level of interest rates and the pace of economic growth, Sakurai said.
"From what the Fed officials have said, I figure that the US central bank wants to raise rates to contain inflation after addressing worries over the financial market crisis as quickly as possible," he said.
Against Asian currencies, the dollar rose to 1,010.35 South Korean won from 1,006.00 on Monday, to 9,125.00 Indonesian rupiah from 9,113.50 and to 30.46 Taiwan dollars from 30.40.
It climbed to 33.48 Thai baht from 33.45 and to 44.31 Philippine pesos from 44.05, while slipping to 1.3628 Singapore dollars from 1.3637.