Dollar rises against the yen in Asia while crisis-hit Thailand's baht slips
May 21, 2014, 12:06 am TWN
TOKYO--The dollar rose against the yen in Asia on Tuesday as investors await clues about future U.S. and Japanese monetary policy, while the Thai baht slipped after the army declared martial law in the crisis-hit nation.
In Tokyo afternoon trading, the greenback fetched 101.52 yen, up from 101.45 yen in New York Monday afternoon.
The euro was hardly changed at US$1.3710 from US$1.3709 in U.S. trade while rising to 139.18 yen against 139.13 yen in U.S. trade.
Investors are focusing on the Bank of Japan's two-day board meeting, which wraps up Wednesday. While it is expected to end with no movement on monetary policy, traders will be closely following remarks by BOJ chief Haruhiko Kuroda.
The central bank head has previously said the BOJ would not hesitate to loosen policy if necessary.
However, if Kuroda emphasizes an upbeat view on the world's third-largest economy, “the market will likely interpret (that) as a signal he will allow a stronger yen and weaker stock market,” said Osamu Takashima, chief FX strategist at Citigroup Global Markets Japan.
Holding off further easing would tend to boost the yen, which in turn tends to weigh on shares of Japanese exporters as it hurts their profitability.
The dollar was mixed against other Asia-Pacific currencies.
The Australian dollar fell to 92.93 U.S. cents from 93.53 cents on Monday, after Reserve Bank of Australia Assistant Governor Guy Debelle signaled the central bank has not given up on pushing the Aussie lower to help ease pressure on exporters.
The U.S. dollar also rose to 58.59 Indian rupees from 58.40 rupees after the Indian unit's recent advances on the pro-business opposition's victory in the country's general election.
The dollar strengthened to 11,446.30 Indonesian rupiah from 11,358.80 rupiah and to 43.69 Philippine pesos from 43.62 pesos.
But the greenback slipped to 1,021.94 South Korean won from 1,022.53 won and to SG$1.2508 from SG$1.2510. The Chinese yuan bought 16.24 yen against 16.23 yen.