US dollar rises in Asia on optimistic sentiment
AFP Wednesday, July 2, 2014, 12:03 am TWN
TOKYO--The dollar edged up in Asia Tuesday as gains in Tokyo stocks boosted sentiment, but lower U.S. bond yields kept the unit under the 102-yen level, analysts said.
In Tokyo afternoon trade, the greenback climbed to 101.42 yen, up from 101.31 yen in New York Monday afternoon.
The euro slipped to US$1.3685 from US$1.3694 while it bought 138.78 yen against 138.73 yen.
The dollar's rise came as Tokyo's benchmark Nikkei stock index gained more than one percent in morning trade.
Investors were heartened by upbeat capital spending plans by Japanese companies seen in the Bank of Japan's quarterly Tankan survey — although overall sentiment sagged from a more than six-year high in the first quarter as an April sales tax hike weighed on activity.
On Monday, the dollar fell as a better-than-expected surge in U.S. pending home sales in May was offset by a slowdown in economic activity in the Chicago region, putting an end to two months of gains.
Daisuke Karakama, market economist at Mizuho Bank, said lower U.S. bond yields held back the dollar's gains Tuesday.
"The dollar may have edged up this morning but it's not bullish," he said.
"The basic trend is that recent poor U.S. (economic) data led to bond buying, lowering yields."
Investors are closely monitoring U.S. manufacturing data for June due out later Tuesday, Junichi Ishikawa, market analyst at IG Securities, told Dow Jones Newswires.
The dollar was mixed against other Asia-Pacific currencies.
It inched up to 43.63 Philippine pesos from 43.62 pesos Monday, and to 60.14 Indian rupees from 60.04 rupees,
The dollar fell to 11,872.50 Indonesian rupiah from 11,942.50 rupiah and to SG$1.2467 from SG$1.2490.
The greenback eased to 1,011.70 South Korean won from 1,012.17 won, and to 32.41 Thai baht from 32.45 baht.
The Australian dollar firmed to 94.52 U.S. cents from 94.22 cents, while the Chinese yuan traded at 16.32 yen against 16.33 yen.
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