Dollar rebounds in Asia, Fed meeting looms
AFPTOKYO--The dollar rebounded in Asia Friday ahead of a U.S. Federal Reserve policy meeting next week, while buying sentiment was also boosted by diplomatic efforts to avert a U.S. military strike in Syria.
September 14, 2013, 12:01 am TWN
The greenback fetched 99.80 yen in Tokyo afternoon trade, up from 99.47 yen in New York, but still below the 100-yen mark seen on Wednesday.
The euro bought 132.51 yen from 132.33 yen and US$1.3276 against US$1.3298 following a weak report on European industrial production.
The Fed will next week hold a two-day policy meeting to decide on the next move for its US$85 billion-a-month bond-buying scheme.
Most analysts expect it to begin winding down this month as the U.S. economy strengthens, although last week's below-forecast jobs figures suggest it will only reduce its bond purchases by a small amount.
The former treasury secretary is seen as more averse to stimulus measures than current Fed chief Ben Bernanke — a pullback on the Fed's monetary easing measures tends to be viewed as dollar-positive.
The European single currency came under pressure after a report showed eurozone factory output fell sharply in July to its lowest level in more than three years, raising doubts about the 17-nation bloc's nascent recovery.
The dollar was mostly higher against other Asia-Pacific currencies.
The U.S. unit strengthened to SG$1.2695 from SG$1.2677 the previous day, to 31.83 Thai baht from 31.70 baht.
The dollar also firmed to 1,086 South Korean won from 1,084 won, to 63.78 Indian rupees from 63.50 rupees and to 43.85 Philippine pesos from 43.77 pesos.
The greenback slipped to 11,304 Indonesian rupiah from 11,309 rupiah, a day after Indonesia's central bank unexpectedly hiked its main interest rate in an aggressive bid to boost the currency.
The Australian dollar edged down to 92.43 U.S. cents from 92.51 cents, while the Chinese yuan fetched 16.28 yen against 16.22 yen.