Dollar takes breather as market digests Fed minutes
Thursday, 11 October 2007
TOKYO, Oct 10 (AFP): The dollar was stable in Asian trade on today as market players digested signs that the Federal Reserve may be open to further interest rate cuts, dealers said.
They said the yen was on the back foot against high-return currencies as growing risk appetite encouraged traders to sell the Japanese unit.
The dollar was almost flat at 117.16 yen in Tokyo afternoon trade after 117.18 in New York late Tuesday.
The euro was steady at 1.4112 dollars after 1.4104, while rising slightly to 165.31 yen from 165.20.
"Trading is quiet as we don't see new market-moving news," said Kenichi Yumoto, vice president of foreign exchange sales and trading at Societe Generale in Tokyo.
He said selling of the yen against high-yielding currencies was underpinning the dollar against the Japanese currency.
On Wall Street, US share prices leapt to record highs Tuesday as minutes from the last Federal Reserve meeting sparked renewed speculation about the possibility of another US rate cut, dealers said.
They said the yen was on the back foot against high-return currencies as growing risk appetite encouraged traders to sell the Japanese unit.
The dollar was almost flat at 117.16 yen in Tokyo afternoon trade after 117.18 in New York late Tuesday.
The euro was steady at 1.4112 dollars after 1.4104, while rising slightly to 165.31 yen from 165.20.
"Trading is quiet as we don't see new market-moving news," said Kenichi Yumoto, vice president of foreign exchange sales and trading at Societe Generale in Tokyo.
He said selling of the yen against high-yielding currencies was underpinning the dollar against the Japanese currency.
On Wall Street, US share prices leapt to record highs Tuesday as minutes from the last Federal Reserve meeting sparked renewed speculation about the possibility of another US rate cut, dealers said.