Greenback rallies in Asia on hedge fund buys
AFPTOKYO -- The dollar staged an afternoon rally in Asian trading on Tuesday as hedge fund purchases helped push up the unit.
September 11, 2013, 12:11 am TWN
The dollar fetched 99.96 yen from 99.69 yen in New York on Monday, while the euro was at US$1.3251 from US$1.3254.
The European single currency strengthened to 132.48 yen from 132.10 yen in U.S. trading.
“There have been large buying orders of the euro/yen pair by hedge funds,” said a senior dealer at a major bank in Japan.
“That's helping push up the dollar/yen” rate.
The dealer added that the dollar-yen rate could push higher as risk appetite grows after Tokyo's successful bid to host the 2020 Olympics as well as Moscow's proposal on Syria raising the possibility of a U.S. military strike being delayed or shelved.
Earlier in the session, the dollar faced selling pressure partly driven by weak U.S. jobs data. All eyes are on the central bank's policy meeting next week for signs of a draw down on the scheme. A pull back would likely push the dollar's value higher.
Yen trading has been dominated by data on Monday showing Japan's economy grew more than expected in April-June.
China also reported upbeat economic figures at the weekend with a better-than-expected trade performance in August, as stronger exports to recovering overseas markets caused the trade surplus to widen to US$28.5 billion.
The euro is treading water as markets look for fresh clues about the health of the 17-nation currency club.
The dollar weakened against other Asia-Pacific currencies.
The U.S. unit slipped to 64.16 Indian rupees from 65.24 rupees Monday afternoon, to 43.92 Philippine pesos from 44.38 pesos, to SG$1.2690 from SG$1.2751 and to 32.11 Thai baht from 32.29 baht.
The dollar also sank to 11,323 Indonesian rupiah from 11,585 rupiah. The greenback was also down at 1,085 South Korean won from 1,088 won.
The Australian dollar rose to 92.63 U.S. cents from 91.92 cents, keeping its uptrend after a conservative election win at the weekend.
The Chinese yuan edged down to 16.25 yen from 16.27 yen.