Euro gains ground in Asia
Wednesday, 15 October 2008
TOKYO, Oct 14 (AFP): The euro rose against the dollar and yen in Asian trade today after European leaders took action to rescue the continent's banking sector, dealers said.
The euro changed hands at 1.3680 dollars, up from 1.3576 in New York late Monday. The single European currency rose to 139.90 yen from 138.50.
European leaders on Sunday reached a deal to pump capital into hard- hit banks and underwrite loans, mirroring a plan by British Prime Minister Gordon Brown.
"Because the European policies announced so far are more concrete and powerful, the euro and pound keep rallying against the dollar," said Marito Ueda, currency dealer at FX prime.
Sterling rose to 1.7524 dollars from 1.7331, after the British government said it would invest up to 37 billion pounds (64 billion dollars) in ailing British banks Royal Bank of Scotland, HBOS and Lloyds TSB.
The dollar also rose against the yen, going up to 102.87 from 102.01.
"The firmer dollar against the yen reflects improved investor confidence following rallies on stock markets," Ueda said.
"Markets are watching if further policy measures will come from the US government and if stocks markets will really calm down," he said.
The dollar fell against other Asian units, slipping to 1.4619 Singapore dollars from 1.4733, to 1,206.50 South Korean won from 1,235.78 and to 32.38 Taiwan dollars from 32.41.
It fell to 9,863 Indonesian rupiah from 9,875, to 47.11 Philippine pesos from 47.43 and to 34.12 Thai baht from 34.28.
The Australian dollar, which has fallen more than 14 per cent in the past week to new five-year lows, jumped to 0.7088 US dollars late Tuesday, up from 0.6584 late Monday but still lower than 0.7750 on October 6.
The euro changed hands at 1.3680 dollars, up from 1.3576 in New York late Monday. The single European currency rose to 139.90 yen from 138.50.
European leaders on Sunday reached a deal to pump capital into hard- hit banks and underwrite loans, mirroring a plan by British Prime Minister Gordon Brown.
"Because the European policies announced so far are more concrete and powerful, the euro and pound keep rallying against the dollar," said Marito Ueda, currency dealer at FX prime.
Sterling rose to 1.7524 dollars from 1.7331, after the British government said it would invest up to 37 billion pounds (64 billion dollars) in ailing British banks Royal Bank of Scotland, HBOS and Lloyds TSB.
The dollar also rose against the yen, going up to 102.87 from 102.01.
"The firmer dollar against the yen reflects improved investor confidence following rallies on stock markets," Ueda said.
"Markets are watching if further policy measures will come from the US government and if stocks markets will really calm down," he said.
The dollar fell against other Asian units, slipping to 1.4619 Singapore dollars from 1.4733, to 1,206.50 South Korean won from 1,235.78 and to 32.38 Taiwan dollars from 32.41.
It fell to 9,863 Indonesian rupiah from 9,875, to 47.11 Philippine pesos from 47.43 and to 34.12 Thai baht from 34.28.
The Australian dollar, which has fallen more than 14 per cent in the past week to new five-year lows, jumped to 0.7088 US dollars late Tuesday, up from 0.6584 late Monday but still lower than 0.7750 on October 6.