Dollar rebounds against Asia currencies
AFPTOKYO--The dollar firmed against major currencies in Asia on Thursday as anxiety about the impact of a possible Western military strike on Syria eased, analysts said.
August 30, 2013, 12:00 am TWN
The U.S. currency was at 97.78 yen, compared with 97.72 in New York overnight and 97.13 yen in Tokyo Wednesday.
The euro fetched US$1.3315 and 130.21 yen, compared with US$1.3341 and 130.36 yen in U.S. trade.
The dollar may move in a 97.20-98.20 yen range and possibly rise further, as traders who bought the Japanese currency on expectations of military action in Syria reverse their positions, said Kengo Suzuki, forex strategist at Mizuho Securities.
“Excessive risk aversion is unwinding,” he told Dow Jones Newswires, as the “initial shock of the news wears off.”
Anxiety about Syria initially caused the dollar to weaken earlier this week as investors bought other safe-haven currencies, including the Swiss franc and yen.
“I think the general feeling is that the United States won't be as heavily involved in Syria as it was when it invaded Iraq back in 2003,” Suzuki said.
Traders were now focused on the release later Thursday of U.S. indicators, including revised second-quarter gross domestic product, he said.
The Indian rupee, which fell nearly four percent to a new record low of 69.22 to the dollar on Wednesday, was at 67.78 in afternoon trade.
Other Asian currencies also recovered against the dollar.
The Indonesian rupiah was quoted at 11,077.00 to the dollar against 11,418, and the Philippine peso was up at 44.57 pesos from 44.79.
The dollar fell to 1,109.86 South Korean won from 1,117.55 won, to SG$1.2753 from SG$1.2842, and to 32.17 Thai baht from 32.29 baht.
The Australian dollar rose to 89.75 US cents from 89.11. The Chinese yuan dropped to 15.98 yen from 15.83.