Dollar turns lower in Asia as economic concerns persist
Wednesday, 26 March 2008
TOKYO, March 25 (AFP): The dollar came under fresh selling pressure in Asian trade today after an overnight rally sparked by hopes of an easing of the credit crunch on Wall Street fizzled out, dealers said.
The dollar fell to 100.19 yen in Tokyo afternoon trade from 100.73 in New York late on Monday.
The euro rose to 1.5550 dollars from 1.5422 and to 155.83 yen from 155.40.
Concerns weighing on the greenback included "the bearish outlook on the economy and expectations of more (interest) rate cuts," said Tomoko Fujii, head of economic strategy at Bank of America in Tokyo.
The Fed may cut rates by half a per centage point next month and another quarter point in June, she said.
The Fed has slashed its key lending rate by a cumulative 300 basis points since September to try to prop up the economy and shaky financial markets.
The lower rates have weakened the dollar as investors seek higher yielding assets priced in other currencies.
The greenback had risen in US trade on news that JPMorgan Chase was raising its offer for Bear Stearns fivefold.
Market watchers said the data had provided only limited comfort to investors.
Against regional Asian currencies, the dollar fell to 1.3857 Singapore dollars in late Asian trade from 1.3903 a day earlier, to 976.80 South Korea won from 998.60 and to 30.13 Taiwan dollars from 30.21.
It fell to 41.61 Philippine pesos from 41.67 and to 31.55 Thai baht from 31.40, while rising to 9,200 Indonesian rupiah from 9,180.
The dollar fell to 100.19 yen in Tokyo afternoon trade from 100.73 in New York late on Monday.
The euro rose to 1.5550 dollars from 1.5422 and to 155.83 yen from 155.40.
Concerns weighing on the greenback included "the bearish outlook on the economy and expectations of more (interest) rate cuts," said Tomoko Fujii, head of economic strategy at Bank of America in Tokyo.
The Fed may cut rates by half a per centage point next month and another quarter point in June, she said.
The Fed has slashed its key lending rate by a cumulative 300 basis points since September to try to prop up the economy and shaky financial markets.
The lower rates have weakened the dollar as investors seek higher yielding assets priced in other currencies.
The greenback had risen in US trade on news that JPMorgan Chase was raising its offer for Bear Stearns fivefold.
Market watchers said the data had provided only limited comfort to investors.
Against regional Asian currencies, the dollar fell to 1.3857 Singapore dollars in late Asian trade from 1.3903 a day earlier, to 976.80 South Korea won from 998.60 and to 30.13 Taiwan dollars from 30.21.
It fell to 41.61 Philippine pesos from 41.67 and to 31.55 Thai baht from 31.40, while rising to 9,200 Indonesian rupiah from 9,180.