Euro firmer in Asian trade ahead of ECB decision
Wednesday, 6 June 2007
TOKYO, June 5 (AFP): The euro edged up against the dollar and the yen in Asian trade today as the market bet on an imminent rise in eurozone interest rates, dealers said.
The dollar also gained on the yen as sentiment towards the greenback remained generally positive following recent brisk US jobs data, they added.
The US currency edged up to 121.82 yen in Tokyo afternoon trade from 121.76 in New York late Monday.
The euro firmed to 1.3500 dollars from 1.3489 and to 164.42 yen from 164.25, approaching a fresh record high against the Japanese currency.
The greenback lost ground in US trade overnight on news that eurozone producer prices rose 0.4 per cent in April from March, and were up 2.4 per cent year-on-year, slightly higher than the 2.2 per cent expected by analysts.
The report reinforced expectations that the European Central Bank will raise its benchmark lending rate by 25 basis points to 4.0 per cent later Wednesday amid robust growth in the 13-nation eurozone.
In contrast Japan's key official lending rate stands at just 0.5 per cent-much lower than the benchmark US rate of 5.25 per cent-which has kept the yen under pressure as investors put their money in higher yielding currencies.
Players were keen to hear remarks by ECB chief Jean-Claude Trichet for clues on prospects for additional rate hikes in the future.
The dollar also gained on the yen as sentiment towards the greenback remained generally positive following recent brisk US jobs data, they added.
The US currency edged up to 121.82 yen in Tokyo afternoon trade from 121.76 in New York late Monday.
The euro firmed to 1.3500 dollars from 1.3489 and to 164.42 yen from 164.25, approaching a fresh record high against the Japanese currency.
The greenback lost ground in US trade overnight on news that eurozone producer prices rose 0.4 per cent in April from March, and were up 2.4 per cent year-on-year, slightly higher than the 2.2 per cent expected by analysts.
The report reinforced expectations that the European Central Bank will raise its benchmark lending rate by 25 basis points to 4.0 per cent later Wednesday amid robust growth in the 13-nation eurozone.
In contrast Japan's key official lending rate stands at just 0.5 per cent-much lower than the benchmark US rate of 5.25 per cent-which has kept the yen under pressure as investors put their money in higher yielding currencies.
Players were keen to hear remarks by ECB chief Jean-Claude Trichet for clues on prospects for additional rate hikes in the future.