Dollar rises in Asian trading

The dollar had been boosted by speculation that the US Federal Reserve would wind down its massive stimulus drive.


Afp July 24, 2013
The dollar was mixed against other Asia-Pacific currencies. PHOTO: CREATIVE COMMONS

TOKYO: The dollar strengthened in thin Asian trade on Wednesday, rebounding from losses in New York fuelled by a weak US manufacturing report, while a consumer confidence spike supported the euro.

The greenback fetched 99.74 yen in afternoon Tokyo trade, compared with 99.48 yen in New York Tuesday afternoon, although still well down from the 100-yen levels seen at the end of last week.

The dollar strengthened against the Pakistani currency, trading for 99.34 rupee.

The euro bought 131.68 yen and $1.3205, from 131.53 yen and $1.3222, after data showed eurozone consumer confidence jumped in July to its highest level in almost two years.

"With the... summer holiday season, I sense there are fewer market participants," a senior dealer at a major bank in Japan told Dow Jones Newswires.

The dollar had been boosted by speculation that the US Federal Reserve would soon begin winding down its massive stimulus drive, known as quantitative easing, as the world's largest economy improves.

But the greenback weakened in New York on Tuesday after the Richmond Fed's manufacturing activity index showed production in the central Atlantic region dropped sharply this month, led by declines in shipments and new order volumes.

The report caught investors off guard and comes after a surprising drop this week in US existing-home sales.

The data had weighed on the dollar as it threw into question the timing of the Fed's drawdown on its monetary easing programme. The dollar was mixed against other Asia-Pacific currencies.

It fell to 59.42 Indian rupees from 59.59 rupees Wednesday, and 1,113.95 South Korean won from 1,116.07 won.

The greenback rose to Sg$1.2649 from Sg$1.2624, to 30.93 Thai baht from 30.92 baht, to 43.23 Philippine pesos from 43.16 pesos and to 10,255 Indonesian rupiah from 10,205 rupiah.

The unit was flat at Tw$29.91. The Australian dollar fell to 92.62 US cents from 92.76 cents while the Chinese yuan changed hands at 16.27 yen against 16.20 yen.

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