Yen firm in Asian trade amid credit jitters
Friday, 3 August 2007
TOKYO, August 2 (AFP): The yen was slightly firmer in choppy Asian trade today as investors kept a nervous watch on global credit markets and the fallout from the US housing market woes, dealers said.
The dollar slipped to 118.74 yen in Tokyo afternoon trade from 118.90 late Wednesday in New York.
The euro was unchanged at 1.3666 dollars and eased to 162.27 yen from 162.56.
Market players remained nervous about the problems in the US sub-prime mortgage sector and recent turmoil in global financial markets, a day after Australia's top investment bank Macquarie said two of its funds faced losses of up to 25 per cent because of the fallout from the credit squeeze.
News that US pending home sales jumped five per cent in July, defying expectations for a drop, provided a modicum of support for the dollar, dealers said.
The yen had the upper hand against other major currencies in Asian trade as traders scaled down risky carry trades that involve selling the Japanese currency to buy higher-yielding currencies, they added.
Players were also waiting nervously for Friday's US employment report.
A survey released Wednesday by ADP Employment Services indicated the US economy only added 48,000 private sector jobs in July, less than half of the 100,000 new positions expected by the market.
Dealers also noted that the ADP report was not a particularly reliable guide to likely outcome of the official non-farm payrolls data.
Players were also waiting for a monetary policy decision from the European Central Bank which is expected to leave its key rate on hold at 4.0 per cent.
The dollar slipped to 1.5216 Singapore dollars from 1.5220 Wednesday, to 922.90 South Korean won from 923.65, and to 29.81 Thai baht from 29.90.
It edged up to 9,320 Indonesian rupiah from 9,294, to 32.88 Taiwan dollars from 32.85, and to 45.81 Philippine pesos from 45.73.
The dollar slipped to 118.74 yen in Tokyo afternoon trade from 118.90 late Wednesday in New York.
The euro was unchanged at 1.3666 dollars and eased to 162.27 yen from 162.56.
Market players remained nervous about the problems in the US sub-prime mortgage sector and recent turmoil in global financial markets, a day after Australia's top investment bank Macquarie said two of its funds faced losses of up to 25 per cent because of the fallout from the credit squeeze.
News that US pending home sales jumped five per cent in July, defying expectations for a drop, provided a modicum of support for the dollar, dealers said.
The yen had the upper hand against other major currencies in Asian trade as traders scaled down risky carry trades that involve selling the Japanese currency to buy higher-yielding currencies, they added.
Players were also waiting nervously for Friday's US employment report.
A survey released Wednesday by ADP Employment Services indicated the US economy only added 48,000 private sector jobs in July, less than half of the 100,000 new positions expected by the market.
Dealers also noted that the ADP report was not a particularly reliable guide to likely outcome of the official non-farm payrolls data.
Players were also waiting for a monetary policy decision from the European Central Bank which is expected to leave its key rate on hold at 4.0 per cent.
The dollar slipped to 1.5216 Singapore dollars from 1.5220 Wednesday, to 922.90 South Korean won from 923.65, and to 29.81 Thai baht from 29.90.
It edged up to 9,320 Indonesian rupiah from 9,294, to 32.88 Taiwan dollars from 32.85, and to 45.81 Philippine pesos from 45.73.