US dollar mixed ahead of Federal Reserve policy meeting
AFPTOKYO--The U.S. dollar was mixed in Asian trade on Tuesday ahead of a U.S. Federal Reserve policy meeting and on the back of weak home sales data, while the yen halted its steep slide.
January 30, 2013, 12:07 am TWN
The U.S. dollar weakened to 90.73 yen in Tokyo, against 90.82 yen in New York on Monday, with the euro also easing to 122.06 yen from 122.20 yen and to US$1.3448 from US$1.3454.
However, Citibank Japan chief forex strategist Osamu Takashima said the yen's gains may just be a temporary deviation, adding: “We suspect (the yen) should have some room to depreciate further, with the upper limit at the 95 level” against the U.S. dollar.
The Fed goes into the two-day meeting on Tuesday a week after Japan's central bank unveiled fresh monetary easing measures that have weakened the yen.
The U.S. bank said last year it would not tighten policy until the jobless rate fell to 6.5 percent. Friday will see the release of official jobs data, with unemployment currently at 7.8 percent.
The euro took a breather after reaching multimonth highs against the U.S. dollar and yen as the European Central Bank said 278 eurozone banks would repay 137 billion euros of ultra-cheap loans early.
That buoyed hopes that the bloc's financial sector was on a firmer footing, but data on Monday showed bank lending to private households in the eurozone contracted as the sovereign debt crisis took a bite out of credit demand.
The U.S. dollar was mostly higher against other Asia-Pacific currencies, rising to 1,085.95 South Korean won from 1,083.77 won Monday.
It also gained to 53.91 Indian rupees from 53.79 rupees and to 40.74 Philippine pesos from 40.70 pesos.
The greenback fell to 9,778 Indonesian rupiah from 9,788 rupiah, while staying unchanged at SG$1.2361.
The Australian dollar firmed to US$1.0443 from US$1.0414, while China's yuan eased to 14.56 yen from 14.60 yen.