Dollar steady as markets await Fed
Wednesday, 19 September 2007
TOKYO, Sept 18 (AFP): The dollar was stable in Asian trade on today as markets waited anxiously for a widely expected US interest rate cut to cushion the world's largest economy from its housing slump, dealers said.
They said the pound remained pressured by concerns about the financial health of British banks given the troubles of lender Northern Rock which has fallen victim to the global credit squeeze.
The dollar was slightly lower at 114.93 yen in Tokyo afternoon trade after 115.10 in New York Monday.
The euro edged down to 1.3860 dollars from 1.3868. Last week the European single currency hit a record high of 1.3927 dollars on worries about the future of the US economy and expectations of a US rate cut.
The euro eased to 159.29 yen from 159.65.
"A wait-and-see mood has spread in the market" ahead of the Federal Reserve decision, said Yosuke Hosokawa, head of forex at Chuo Mitsui Trust Bank.
The pound continued to suffer from a crisis at Northern Rock the British mortgage lender that was bailed out by the Bank of England last week.
Sterling fell to 1.9902 dollars from 1.9945 in late New York trade.
The British government vowed Monday to protect all savings as customers queued for a third straight day to withdraw cash from the bank, which has been hurt by the global credit crunch sparked by problems in the US mortgage sector.
The Bank of Japan was also due to begin a two-day meeting on interest rates later Tuesday but expectations of an interest rate rise have faded in light of recent market instability and political uncertainties.
The BoJ may not hike interest rates through the rest of the year because of the credit market problems and uncertainties over the domestic economy and political situation, the Nikkei business daily reported Tuesday.
The dollar edged up to 1.5168 Singapore dollars from 1.5154 a day earlier, to 930.45 South Korean won from 928.17 and to 9,392 Indonesian rupiah from 9,362.
It rose to 46.50 Philippine pesos from 46.21 and to 32.05 Thai baht from 32.00, while holding steady at 33.12 Taiwan dollars.
They said the pound remained pressured by concerns about the financial health of British banks given the troubles of lender Northern Rock which has fallen victim to the global credit squeeze.
The dollar was slightly lower at 114.93 yen in Tokyo afternoon trade after 115.10 in New York Monday.
The euro edged down to 1.3860 dollars from 1.3868. Last week the European single currency hit a record high of 1.3927 dollars on worries about the future of the US economy and expectations of a US rate cut.
The euro eased to 159.29 yen from 159.65.
"A wait-and-see mood has spread in the market" ahead of the Federal Reserve decision, said Yosuke Hosokawa, head of forex at Chuo Mitsui Trust Bank.
The pound continued to suffer from a crisis at Northern Rock the British mortgage lender that was bailed out by the Bank of England last week.
Sterling fell to 1.9902 dollars from 1.9945 in late New York trade.
The British government vowed Monday to protect all savings as customers queued for a third straight day to withdraw cash from the bank, which has been hurt by the global credit crunch sparked by problems in the US mortgage sector.
The Bank of Japan was also due to begin a two-day meeting on interest rates later Tuesday but expectations of an interest rate rise have faded in light of recent market instability and political uncertainties.
The BoJ may not hike interest rates through the rest of the year because of the credit market problems and uncertainties over the domestic economy and political situation, the Nikkei business daily reported Tuesday.
The dollar edged up to 1.5168 Singapore dollars from 1.5154 a day earlier, to 930.45 South Korean won from 928.17 and to 9,392 Indonesian rupiah from 9,362.
It rose to 46.50 Philippine pesos from 46.21 and to 32.05 Thai baht from 32.00, while holding steady at 33.12 Taiwan dollars.