Dollar steady as market braces for Fed, G20
Sunday, 20 September 2009
NEW YORK, Sept 19 (AFP): The dollar held firm yesterday as traders consolidated positions and awaited next week's meeting of the US Federal Reserve and Group of 20 summit.
The euro eased to 1.4706 dollars at 2100 GMT from 1.4740 dollars in New York late Thursday, when the single currency hit its highest level in almost a year.
The US unit edged up to 91.35 yen from 91.03 yen.
In late New York trade, the dollar stood at 1.0299 Swiss francs from 1.0283 Thursday.
The pound was at 1.6228 dollars after 1.6445.
The dollar hit a seven-month low of 90.16 yen on Wednesday after Japan's new finance minister suggested the authorities would not intervene on the markets to weaken the rising yen.
Dealers said that with little new data, there was no fresh lead to follow and so investors took some profits.
Analysts said that despite the latest move, the market was moving away from the safe-haven dollar as the global economic recovery gains momentum.
"The dollar experienced some much needed relief during overnight trading as the recent selling frenzy halted in response to substantial declines throughout global equity markets," said Michael McGrath at PNC Bank.
Boris Schlossberg at Global Forex Trading said that "the dollar's fate is now depended on the direction of US short term interest rates" but that he expects the Fed to hold rates near zero next week and for the near future.
The British pound meanwhile fell sharply after news that the country's public finances plunged further into the red in August, striking a record deficit for the month under the weight of a deep recession.
The euro eased to 1.4706 dollars at 2100 GMT from 1.4740 dollars in New York late Thursday, when the single currency hit its highest level in almost a year.
The US unit edged up to 91.35 yen from 91.03 yen.
In late New York trade, the dollar stood at 1.0299 Swiss francs from 1.0283 Thursday.
The pound was at 1.6228 dollars after 1.6445.
The dollar hit a seven-month low of 90.16 yen on Wednesday after Japan's new finance minister suggested the authorities would not intervene on the markets to weaken the rising yen.
Dealers said that with little new data, there was no fresh lead to follow and so investors took some profits.
Analysts said that despite the latest move, the market was moving away from the safe-haven dollar as the global economic recovery gains momentum.
"The dollar experienced some much needed relief during overnight trading as the recent selling frenzy halted in response to substantial declines throughout global equity markets," said Michael McGrath at PNC Bank.
Boris Schlossberg at Global Forex Trading said that "the dollar's fate is now depended on the direction of US short term interest rates" but that he expects the Fed to hold rates near zero next week and for the near future.
The British pound meanwhile fell sharply after news that the country's public finances plunged further into the red in August, striking a record deficit for the month under the weight of a deep recession.