US dollar trades flat in Asia following BOJ easing
November 1, 2012, 1:09 am TWN
TOKYO--The dollar was flat in Asia Wednesday following the Bank of Japan's (BOJ) latest easing measures, while analysts said a superstorm that battered the U.S. could lift President Barack Obama's re-election chances.
The greenback bought 79.60 yen in Tokyo afternoon trade against 79.61 yen in U.S. trade late Tuesday.
The euro was mixed, fetching US$1.2962 and 103.15 yen against US$1.2959 and 103.18 yen.
On Tuesday, the BOJ unveiled US$138 billion in fresh monetary easing, as it tries to kickstart the world's third-largest economy which it also warned would grow 1.5 percent in the year to March, much lower than its earlier 2.2 percent forecast.
Citibank Japan chief strategist Osamu Takashima told Dow Jones Newswires that the dollar entered a near-term "correction phase" after its recent gains that were driven by speculation for more BOJ easing.
In the United States Hurricane Sandy ripped along the East Coast on Monday and Tuesday, shutting down New York City and Wall Street.
"Indeed, the witticism that, 'If there is a God, he is a Democrat' has resonated, with a sense that this natural disaster gifts the president the ability to simply look presidential, improving his re-election chances in the process," National Australia Bank said.
"This has been reflected in a softer U.S. dollar, albeit helped by some direct support for the euro from fairly well received Italian bond auctions and Spanish Q3 GDP data" it said in a note.
Investors are usually attracted to Republican candidates, who they see as more market-friendly.