Greenback rangebound in Asia
AFPTOKYO--The U.S. dollar barely moved against the yen in Asia on Monday after investors turned to the Japanese unit following last week's losses on Wall Street.
August 20, 2013, 12:02 am TWN
The greenback fetched 97.54 yen in Tokyo, compared with 97.53 yen in New York late Friday. It had briefly touched 97.80 yen after official data Monday showed Japan's trade deficit nearly doubled year on year to US$10.5 billion in July.
The euro fetched US$1.3327 compared with US$1.3326 while it was also at 130.02 yen, from 129.93 yen.
“We should be on high alert as the dollar has not gone up against the yen despite rises in U.S. long-term interest rates,” Credit Suisse research analyst Hiromichi Shirakawa said.
“As seen in the downtrend in U.S. stock prices, a risk-off mood is increasingly stronger in financial markets, requiring caution,” he said in a note.
U.S. equity markets suffered one of their poorest weeks of 2013, tumbling on the back of uninspiring economic data and troubling earnings reports from Walmart and other retailers.
With expectations rising that the U.S. Federal Reserve will soon begin to reel in its stimulus program the dollar broke to another record against the Indian rupee.
On Monday trade it bought over 62.03 rupees owing to concerns that an end to the Fed's bond-buying will mean the vast sums of cash that have supported investment in emerging economies will dry up.
The dollar was mostly higher against other Asia-Pacific currencies.
It firmed to 31.34 Thai baht from 31.30 baht on Friday, to SG$1.2751 from SG$1.2712, to 10,575 Indonesian rupiah from 10,419 rupiah, and to 1,115.00 South Korean won from 1,113.97 won, but fell to 43.69 Philippine pesos from 43.82 pesos.
The Australian dollar rose to 92.13 U.S. cents from 91.51 cents and the Chinese yuan fetched 15.92 yen against 15.96 yen.