Dollar steady in Asia as subprime jitters abate
Thursday, 27 December 2007
TOKYO, Dec 26 (AFP): The dollar held steady in subdued Asian trade Wednesday, propped up by hopes of an easing of the US subprime loan crisis, dealers said.
They said activity was muted amid a dearth of fresh trading leads following the Christmas holiday in overseas markets, dealers said.
The greenback was quoted at 114.18 yen in Tokyo afternoon trade, slightly higher than its level of 114.00 yen in Tokyo Tuesday afternoon.
The euro edged up to 1.4413 dollars from 1.4391 and to 164.49 yen after 164.06.
The greenback was supported by a continued easing of worries over a global credit squeeze following the recent news that US investment bank Merrill Lynch had won cash injections of up to 6.2 billion dollars from various investors.
"The dollar is being traded over the 114 yen level thanks to a boost from the Merrill Lynch infusion," said Yuya Koike, a forex dealer at Hachijuni Bank.
Japanese shares rose Wednesday on hopes that a series of cash injections into major US banks, together with concerted action by key central banks, would help to ease problems caused by a wave of defaults on US subprime mortgages.
Financial markets have seen turbulence for months over concerns about the US subprime mortgage sector, with high-risk customers who were extended loans at the height of the housing boom now struggling to make mortgage payments.
The problems in global credit markets have caused large financial losses at many major US investment banks.
Another batch of earnings reports of major US banks due next month will be closely watched, Hachijuni's Koike said.
Although the dollar retained its firm tone, it failed to draw strong buying interest from investors, who opted to wait for fresh leads, dealers said.
Few traders were willing to jump into the market in the absence of most foreign players this week.
Against regional Asian currencies, the dollar fell to 1.4524 Singapore dollars from 1.4528 Tuesday, and to 939.15 South Korean won from 939.30.
But the greenback rose to 32.532 Taiwan dollars from 32.508, to 30.23 Thai baht from 30.11, to 41.32 Philippine pesos from 41.27 and to 9,412.5 Indonesian rupiah from 9,400.
They said activity was muted amid a dearth of fresh trading leads following the Christmas holiday in overseas markets, dealers said.
The greenback was quoted at 114.18 yen in Tokyo afternoon trade, slightly higher than its level of 114.00 yen in Tokyo Tuesday afternoon.
The euro edged up to 1.4413 dollars from 1.4391 and to 164.49 yen after 164.06.
The greenback was supported by a continued easing of worries over a global credit squeeze following the recent news that US investment bank Merrill Lynch had won cash injections of up to 6.2 billion dollars from various investors.
"The dollar is being traded over the 114 yen level thanks to a boost from the Merrill Lynch infusion," said Yuya Koike, a forex dealer at Hachijuni Bank.
Japanese shares rose Wednesday on hopes that a series of cash injections into major US banks, together with concerted action by key central banks, would help to ease problems caused by a wave of defaults on US subprime mortgages.
Financial markets have seen turbulence for months over concerns about the US subprime mortgage sector, with high-risk customers who were extended loans at the height of the housing boom now struggling to make mortgage payments.
The problems in global credit markets have caused large financial losses at many major US investment banks.
Another batch of earnings reports of major US banks due next month will be closely watched, Hachijuni's Koike said.
Although the dollar retained its firm tone, it failed to draw strong buying interest from investors, who opted to wait for fresh leads, dealers said.
Few traders were willing to jump into the market in the absence of most foreign players this week.
Against regional Asian currencies, the dollar fell to 1.4524 Singapore dollars from 1.4528 Tuesday, and to 939.15 South Korean won from 939.30.
But the greenback rose to 32.532 Taiwan dollars from 32.508, to 30.23 Thai baht from 30.11, to 41.32 Philippine pesos from 41.27 and to 9,412.5 Indonesian rupiah from 9,400.