Euro rises in Asia as traders take profits
Thursday, 28 August 2008
TOKYO, Aug 27 (AFP): The euro rebounded in Asia today from a six-month low against the dollar as traders took profits from the greenback's recent rally while awaiting fresh economic data, dealers said.
The dollar eased to 109.11 yen in Tokyo afternoon trade from 109.67 in New York late Tuesday. The euro rose to 1.4701 dollars from 1.4653 but slipped to 160.34 yen from 160.71.
Market players took profits after driving the euro lower in response to gloomy data from Europe, said Hachijuni Bank forex dealer Masatsugu Miwata.
"Currencies are moving for technical reasons," he said, adding that the euro's rise was likely to be limited.
Markets remained wary about buying the single currency after downbeat consumer confidence and business sentiment surveys in Germany, dealers said.
The dollar has been supported recently by speculation that major economies other than the United States may feel the brunt of a global slowdown, prompting the central banks in those countries to lower interest rates.
In contrast, minutes from the Federal Reserve's August 5 meeting released Tuesday showed members indicated their next move was still most likely an interest rate hike in view of inflationary pressures.
The British pound rose to 1.8442 dollars, after falling Tuesday to as low as 1.8331, its weakest point since July 2006.
Dealers were waiting for more US economic data due this week, including durable goods orders Wednesday, followed by weekly jobless claims and second-quarter economic growth Thursday.
The dollar eased to 109.11 yen in Tokyo afternoon trade from 109.67 in New York late Tuesday. The euro rose to 1.4701 dollars from 1.4653 but slipped to 160.34 yen from 160.71.
Market players took profits after driving the euro lower in response to gloomy data from Europe, said Hachijuni Bank forex dealer Masatsugu Miwata.
"Currencies are moving for technical reasons," he said, adding that the euro's rise was likely to be limited.
Markets remained wary about buying the single currency after downbeat consumer confidence and business sentiment surveys in Germany, dealers said.
The dollar has been supported recently by speculation that major economies other than the United States may feel the brunt of a global slowdown, prompting the central banks in those countries to lower interest rates.
In contrast, minutes from the Federal Reserve's August 5 meeting released Tuesday showed members indicated their next move was still most likely an interest rate hike in view of inflationary pressures.
The British pound rose to 1.8442 dollars, after falling Tuesday to as low as 1.8331, its weakest point since July 2006.
Dealers were waiting for more US economic data due this week, including durable goods orders Wednesday, followed by weekly jobless claims and second-quarter economic growth Thursday.