Greenback makes back ground in Asia
AFPTOKYO--The U.S. dollar rebounded Monday as Japanese officials talked up the nation's latest economic growth data after the figures came in weaker than expected.
August 13, 2013, 12:05 am TWN
The greenback was buying 96.71 yen in late afternoon trading, bouncing back from a day low of 95.92 yen and 96.24 yen in New York on Friday.
The euro bought US$1.3303 and 128.66 yen, from US$1.3338 and 128.35 in U.S. trade.
Traders initially sold the dollar after Tokyo announced in the morning that the world's third-largest economy grew by 0.6 percent in the April-June period from the previous quarter, missing analyst expectations and slowing from a revised 0.9 percent increase between January and March.
The weaker-than-expected figures dampened investor spirits and raised speculation that the government may hold off a series of sales tax hikes aimed at doubling the rate to 10 percent by 2015.
The move is widely seen as critical to efforts to bring down Japan's eye-watering national debt, the worst in the industrialized world at more than twice the size of the economy.
But Japanese leaders put an upbeat gloss on the fresh data, saying the numbers showed Japan's recovery was on track.
Looking ahead, U.S. economic figures including retail sales and industrial output are due out this week as markets look for clues as to when the U.S. Federal Reserve will start rolling back its huge stimulus drive.
A pull back on the program would mean fewer dollars in the financial system, boosting demand and the greenback's value.
The dollar was mixed against other Asia-Pacific currencies Monday.
It firmed to 43.66 Philippine pesos from 43.52 pesos on Friday, to 1,113.19 South Korean won from 1,112.09 won and to SG$1.2609 from SG$1.2603.
The greenback eased to 60.73 Indian rupees from 60.86 rupees, to 31.17 Thai baht from 31.20 baht and to 10,302 Indonesian rupiah from 10,310 rupiah.
The Australian dollar strengthened to 91.76 U.S. cents from 91.09 cents.
The Chinese yuan fetched 15.79 yen from 15.74 yen.