US dollar sags lower in Asia forex trade
AFPTOKYO--The dollar edged down against the safe-haven yen in Asia on Tuesday due to concerns over a possible U.S. military action against Syria.
August 28, 2013, 12:01 am TWN
The dollar was at 98.29 yen in Tokyo afternoon trade, down from 98.51 yen in New York Monday afternoon.
The euro bought US$1.3373 and 131.45 yen compared with US$1.3369 and 131.68 yen.
The greenback lost ground in the wake of a decline in Tokyo stocks and due to concerns over a possible U.S. military strike against Syria, said a dealer at a Japanese bank.
“The possibility of the U.S. military attacks could make investors risk averse, weighing on the dollar,” he told Dow Jones Newswires.
U.S. Secretary of State John Kerry gave the most explicit warning yet to Damascus that the U.S. would take action over the chemical weapons attack, which he labeled a “moral obscenity”.
Emerging Asia currencies were mostly lower, with the Indian rupee trading at 65.32 to the dollar, down from 64.23 Monday afternoon and close to a record low of 65.56 last week.
Expectations of an end to the U.S. stimulus program have seen investors in recent months repatriate some of the vast sums that have poured into emerging economies, hitting currencies and equities.
Some speculate the U.S. central bank would announce its start of tapering the bond-buying program at the next Sept. 17-18 meeting of the policy-setting Federal Open Market Committee.
The dollar rose to 10,925 Indonesian rupiah from 10,770 on Monday.
It went up to 44.43 Philippine pesos from 44.20 pesos, to 1,115.85 South Korean won from 1,113.20 won, and to SG$1.2824 from SG$1.2791.
The Thai baht was flat at 32.16 baht.
The Australian dollar fell to 89.81 U.S. cents from rose to 90.39 cents. The Chinese yuan fetched 16.03 yen against 16.07 yen.