Dollar supported by firm stocks in Asian trade
Friday, 10 August 2007
TOKYO, Aug 9 (AFP): The dollar was steady in Asian trade today, supported by rebounding global share prices, while the market reacted cautiously to a report that China might dump greenbacks, dealers said.
The dollar eased to 119.64 yen in Tokyo afternoon from 119.73 in New York late Wednesday.
The euro was steady at 1.3801 dollars after 1.3796 and at 165.10 yen from 165.17.
The dollar was supported by a recent rally on global stock markets and a signs of an easing of recent turmoil in US credit markets, said Masaki Fukui, senior economist in the forex division of Mizuho Corporate Bank.
Fukui said the market was weighing a British newspaper report claiming that China's government may "liquidate" its large holdings of US assets if Washington imposes threatened trade sanctions on Beijing.
Britain's Daily Telegraph newspaper reported that Chinese Communist Party officials had hinted Beijing may use its 1.33 trillion dollars of foreign reserves "as a political weapon" to deter the US Congress from taking action.
The dollar eased to 119.64 yen in Tokyo afternoon from 119.73 in New York late Wednesday.
The euro was steady at 1.3801 dollars after 1.3796 and at 165.10 yen from 165.17.
The dollar was supported by a recent rally on global stock markets and a signs of an easing of recent turmoil in US credit markets, said Masaki Fukui, senior economist in the forex division of Mizuho Corporate Bank.
Fukui said the market was weighing a British newspaper report claiming that China's government may "liquidate" its large holdings of US assets if Washington imposes threatened trade sanctions on Beijing.
Britain's Daily Telegraph newspaper reported that Chinese Communist Party officials had hinted Beijing may use its 1.33 trillion dollars of foreign reserves "as a political weapon" to deter the US Congress from taking action.