Euro rises further in Asia
Friday, 29 August 2008
TOKYO, Aug 28 (AFP): The euro extended its gains against the dollar and the yen in Asia today on speculation that eurozone interest rate cuts are unlikely in the near future, dealers said.
The euro rose to 1.4793 dollars in Tokyo afternoon trade from 1.4737 in New York late Wednesday, and was mostly steady at 161.28 yen from 161.32. The dollar softened to 109.06 yen against 109.65.
The euro was buoyed by comments from European Central Bank policymaker Axel Weber, who indicated the bank was unlikely to lower interest rates any time soon, said Sumitomo Trust Bank chief forex strategist Saburo Matsumoto.
Up to now, markets have been expecting rate cuts from the ECB and hikes from the US Federal Reserve to narrow the rate differential in the two regions.
The dollar was pressured by a fresh rise in oil prices on concerns that Tropical Storm Gustav could hit oil and gas installations in the Gulf of Mexico, dealers said.
Market players were looking ahead to another batch of US economic indicators, including second-quarter economic growth and a home price survey due out later in the day.
Dealers said the greenback could get a boost from the snapshot of economic second-quarter growth amid hopes it would be revised upwards from an earlier estimate of 1.9 per cent.
But the market impact was unlikely to be huge as the growth figures were considered a lagging indicator, they added.
"The dollar is not making headway, and will be unlikely to break above the 110-yen level," Matsumoto said.
The dollar was down against most regional Asian currencies.
It eased to 1,082.15 South Korean won from 1,084.40, to 1.4126 Singapore dollars from 1.4175 and to 31.47 Taiwan dollars from 31.52.
It also softened to 34.04 Thai baht from 34.12 and to 9,155 Indonesian rupiah from 9,164 but was stable at 45.77 Philippine pesos.
The euro rose to 1.4793 dollars in Tokyo afternoon trade from 1.4737 in New York late Wednesday, and was mostly steady at 161.28 yen from 161.32. The dollar softened to 109.06 yen against 109.65.
The euro was buoyed by comments from European Central Bank policymaker Axel Weber, who indicated the bank was unlikely to lower interest rates any time soon, said Sumitomo Trust Bank chief forex strategist Saburo Matsumoto.
Up to now, markets have been expecting rate cuts from the ECB and hikes from the US Federal Reserve to narrow the rate differential in the two regions.
The dollar was pressured by a fresh rise in oil prices on concerns that Tropical Storm Gustav could hit oil and gas installations in the Gulf of Mexico, dealers said.
Market players were looking ahead to another batch of US economic indicators, including second-quarter economic growth and a home price survey due out later in the day.
Dealers said the greenback could get a boost from the snapshot of economic second-quarter growth amid hopes it would be revised upwards from an earlier estimate of 1.9 per cent.
But the market impact was unlikely to be huge as the growth figures were considered a lagging indicator, they added.
"The dollar is not making headway, and will be unlikely to break above the 110-yen level," Matsumoto said.
The dollar was down against most regional Asian currencies.
It eased to 1,082.15 South Korean won from 1,084.40, to 1.4126 Singapore dollars from 1.4175 and to 31.47 Taiwan dollars from 31.52.
It also softened to 34.04 Thai baht from 34.12 and to 9,155 Indonesian rupiah from 9,164 but was stable at 45.77 Philippine pesos.