US dollar firms vs. euro & yen, slips against rupee
AFPTOKYO--The dollar firmed against the euro and the yen on Wednesday, while India's rupee rebounded from a record low as traders await the release of minutes from the U.S. Federal Reserve's July meeting.
August 22, 2013, 12:04 am TWN
Trade was cautious, with analysts expecting the Fed to soon announce the end of its yearlong stimulus, which has helped fuel a global equity and forex rally.
In afternoon Asian trade the greenback fetched 97.49 yen, against 97.32 yen in New York on Tuesday. The euro sat at US$1.3418, against US$1.3420.
The European unit broke US$1.34 in New York for the first time since January after U.S. Treasury yields fell to 2.81 percent from a two-year high of 2.88 percent reached Monday, as bonds appeared oversold after sinking for more than three months.
The single currency was also trading at 130.87 yen, up from 130.60 yen.
Investors will be poring over the Fed minutes to find out “what kind of discussion took place over (the) possibility of reducing” its bond-buying known as quantitative easing (QE), Shinichiro Kadota, currency analyst at Barclays Capital, said in a statement.
But while expectations are high that QE is coming to an end India's rupee, Asia's worst-performing major currency this year, strengthened to 63.31 against the dollar on Wednesday after sitting at a record low 64.1 on Tuesday.
However, the Indonesian rupiah continued to fall, trading at 10,685 to the dollar, from 10,495 rupiah Tuesday, while the Thai baht was at 31.78 from 31.69.
Expectations the Fed will wind down QE has seen foreign investors repatriate the vast sums of cash that poured into emerging economies when the scheme was unveiled in September 2012, hammering currencies and equities.
The dollar was mixed against other Asia-Pacific currencies. It fell to 1,117.90 South Korean won from 1,121.58 won, and to SG$1.2767 from SG$1.2790.
It firmed to 43.95 Philippine pesos from 43.72 pesos, while the Australian dollar fell to 90.33 U.S. cents from 90.39 cents.
The Chinese yuan fetched 15.89 yen against 15.90 yen.